Percentage to spend on Amp and Speakers

For $2k you should be able to secure a high quality speaker. You should consider getting a speaker that is an easy load on an amplifier and doesn't require high wattages for best sound. This will give you maximum flexibility in picking an amplifier. Ideally, you speakers should be good enough to remain in your system even after one level of upgrade on the source/electronics. As a rough guide, spend equivalent amounts on the source and speakers (in this case $2k each) and spend half that amount ($1k) on your amplifier. Great cables are expensive, but good cables are relatively cheap ($100-250). The same goes for interconnects. At this price level, it's more cost effective to go with an integrated amp which will also help you save on cable costs. There is a wide divergence of opinion on this topic and no answer is necessarily correct. Hope this helps.

Although not the best way to plan a system, I would estimate that you should spend roughly 50% of the total value of your system on your speakers. They are the single most important aspect of the listening experience. So, allotting $2000 for speakers your total system should tally about $4k-$5k (again rough estimates). I set my limit at $5k when I recently purchased a new system and built a great one. Using Audiogon and Ebay I saved well over $3000 off retail! Happy Hunting.

Ditto to the above. Bottom line: next to source material, speakers are THE most important system component. Cables and interconnects..the least. Re speakers: unless you crave exotic woods, opt for a plain finish to maximize value. If your space is average to small, a medium sized speaker system should be sufficient. Given the above criteria, there are many fine speakers available. If you're really hard up and don't mind solitary listening, medium range Grado headphones are superb and inexpensive. Finally, don't be deceived into investing large sums on wire.

I may be going in the opposite direction here but, you can get very satisfying sound out of various speakers costing 25% maybe even up to 40% less than you are ready to spend. But I have found that if you do not get a good source, you will not want to listen to your stereo for more that a couple hours a week. With a well-balanced system, you will want to listen for a couple hours a night. If you are going to go digital, which I assume you are, make sure to get a good CD player or DAC transport. You must have a good source. You will have to spend almost $1,000 here and can easily double that if you go with the DAC transport route. An inexpensive and or poor CD player will make your ears bleed and you will get tired of listening for a any length of time even with the very best amp and very best speakers. A nice front end will make an average amp and well designed speakers sound wonderful. An amp / pre amp will give you more flexibility to upgrade in the long run compared to an integrated amp but like the previous person mentioned, you will have to add more money for cables which is the next subject. Remember that cables are as important as any component. You will need cables for you speakers, between your DAC and transport if you go that route and between you amp and pre amp. Again, you don’t need to spend a ton of money, but you will need premium cables. In the used market, discounts of over 50% are common place on good to great quality gear. Good Luck!