How do you determine how much to spend on speakers

there is no rule of thumb. if you like the speakers and can afford them, you buy them.

given a budget constraint, buy the speakers first. sacrafice on the elctronics and thenm at some point, upgrade the electronics.

for example. let's say you have a $3000. budget.

buy a "cheap" dvd player and receiver and inexpensive cables, and save the rest for the speakers.

you may not get great sound, but you will presumably buy the speakers you want and will hold onto them for a while.

My .02$

For a begining audiophile: Understand that you don't buy a system in a day - you assemble a system over years. Find the best speakers you can afford. Go to shows, shops, friends etc and find a speaker whose sonic characteristics you like and can afford. Buy them even if you have to use a reciever and lamp cord for a while. Then slowly, over time, find an amp/speaker cable to mate with them, evaluate your room and begin a treatment program, carefully pick a preamp to mate with your system and continue to work out to the front end. Don't worry that your system is not immediately perfect. It will never be - just better and better. Buy cheap used until you can afford (and fully evalutate in your system)the expensive new. When you are done you will have a system you really like and fully know. Of course if you are Bill Gate$ endowed you can just throw money around and it will come out ok in the end. But for the rest of us building a system takes time which is really more important than money. And by all means enjoy the hobby!

Cjsmithmd,
I have to say that your post is one of the most sane and helpful and insightful and practical posts I have ever read. Somehow in reading it, I drew larger lessons about life, about career choices, etc ... You seem to say, just start, do some research, understand that the journey will take time, make adjustments, learn what you like, move toward what you like, understanding all along that you will never achieve perfection ... and enjoy yourself as much as you can along the way ... man, a great philosophy of life! ... thanks! ..

Wow, Wattboss, you're welcome!

Yes, I really like this hobby - it does integrate well into my life.

I think I remember reading that the speakers should be at least 50% of the cost of the entire system. It was a while ago, but it mentioned that speakers don't really wear out before our ears get used to and bored with them. After 20 years of this hobby I was finally able to do that, it did make more of a difference than I ever thought possible and I am only up to Wilson Audio X-1 Series lll's. The next step is the X-2's.
Todd