Basics for connecting PC to stereo

I am only using CDs to listen to music on my stereo. I would like to start to use my computer to be the source of my music for both convenience and I have some music only in mp3 or wav due to the unavailability of the music in CD format (example dj spooky remixes).

I have yet to find a basics guide on how to do this but I am hoping I have been looking in the wrong places and some of you know where it is.

I have a low budget stereo for an audiogon user (which is high budget for the general public), no standalone DAC, and am hoping to make the transition for under $1000, but willing to go $1500.

Any information would be greatly appreciated.
Thanks.
Dominic