the AUDIOPHILE's budget
A cost-effective budget provides the best bang for the buck
Audiophiles with varied budgets, and or with different listening room sizes coupled with aesthetic preferences would inevitably fit into one of the following systems classes. However, to better optimize a cost-benefit high-resolution audio system, it is incumbent upon the audiophile to allocate funds accordingly to maximize the return on investment (read satisfaction). It is pertinent to note that renovations, furnishings, room acoustic treatments, mechanical coupling devices, maintenance, enhancement (tweak) items, measurement devices, or other ancillaries are not included in the suggested budget. I believe all the following classes suggested can produce a high-resolution system provided that the rules of setup are judiciously observed (Read my article on Foundation: Audiophiles practices and Scaffold: Rules 1 to 7).
At the end of the day, scale and nuance in sound reproduction become the differentiating factor within each system class notwithstanding the built quality and styling. The obvious differentiating factor I believe among the different classes would be one of scale, i.e. the size of musicians and instruments within a larger soundstage and dynamic range i.e. higher SPLs hence greater slam and control. Suffice it to say as you scale up the system classes the presentation would appear to be more live-like in terms of size and dynamics.
For the Signature and State-of-the-art categories, it would be prudent to calibrate a dedicated listening room to fully realize the system's potential, especially when utilizing larger loudspeakers and higher-power amplification. The room volume (dimensions) must be large enough to sustain the loading of acoustic pressure waves, otherwise, the room would be overwhelmed by the sound pressure level resulting in nasty room modes that would be difficult to control. A larger room configuration must also be treated acoustically, otherwise, it may introduce annoying reverberation that will result in a poor return on your investment.
Front-end components: 35%
These would include either the analog system (turntable, cartridge, and phono stage combination) or a digital system (transport/DAC), or a (Music Streamer/DAC) including the corresponding interconnecting cables, equipment rack/platform, and the power line conditioner. This budget is meant only for the primary source of music playback. Front-end components get the second-highest budget consideration because they are the source components otherwise, as they say, it's garbage in and garbage out. If the source signals are not pristine, then down the chain it’s not going to get any better or it may even get worse.
Budgeting for an analog system
Spend 35% of your total budget on your analog system.
Of the total audio system budget, set aside 35% for the phono stage because this corrects and manages very low-level, but sensitive signals from the cartridge to be amplified. The RIAA circuit as required should be discreet and matched between channels. A linear power supply should be favored for low noise, and practical features for flexibility of adjustment to accommodate a wide variety of MC cartridges.
Then spend 25% on the cartridge/stylus combination because this is the tip of the spear - the business end. Anything that must convert mechanical energy to electrical energy (2 different mediums) must be prioritized because of its critical function to ensure a linear outcome. If things go wrong here everything down the chain is inconsequential. If budget allows, an MC cartridge is always a better option.
Spend 20% on the tonearm if buying separates, otherwise, add this budget to the table (i.e., 40%) making sure that the tonearm is of equal or better quality than the table.
The remaining 20% is on your table. The table's job is to spin accurately and keep away extraneous vibrations from getting to the stylus by absorption or isolation by coupling or de-coupling techniques. This is achieved by the platter and the plinth. The heavier the plinth and platter the better. The feet should be height adjustable to help level the table.
Budgeting for a digital system
Spend 35% of your total budget on your digital system.
The DAC is the most important component in the digital audio chain because it makes the most difference in sound quality. Therefore spend 35% of your budget here. Delta Sigma or R2R methodologies are both acceptable.
Next, spend 25% on the CD transport system or music streamer depending on your primary source for music.
Spend 20% on your power supply. Because the digital switch-mode brick that comes standard for most DACs, Transport, or streamer is inherently noisy (dirty), the power supply must filter noise off the wall and not generate its noise. If the equipment comes with a built-in power supply, then add this amount to the budget of your chosen equipment.
Finally spend 20% on interface devices, such as a ‘re-clocker’ if you are streaming off a computer and a high-quality SPIDF cable. Remember, you will have to fork out a monthly recurring fee for a CD-quality or better streaming service if you decide on the streaming route.
Amplifiers: 25%
These would include either the Pre and Power amplifiers or an integrated amplifier, which includes the corresponding interconnects. If you are using active loudspeakers, you should budget 20% instead and re-allocate the 5% into the loudspeakers budget. You must match the amplifier power to your loudspeakers and your preamplifier output voltage to your power amplifier input voltage, which is why amplifiers are the final product to consider. In general, they are not as critical to the overall sound quality provided, they are carefully matched.
Priority buying for connecting cables
For priority buying and budgeting, loudspeaker cables make the most difference in connecting cables, followed by the power amplifier interconnects because it’s going to amplify the signal being fed. Next should be the turntable interconnect to the phono stage that should be well shielded or the digital interface between the player and DAC, ideally, choose SPDIF outputs. Budget no more than 20% of your system’s cost on connecting cables. The subwoofer interconnects if used should not have high capacitance, especially for longer runs.
Loudspeakers: 40%
These would include subwoofers if any, and corresponding loudspeaker cables. If you choose to use active loudspeakers, then another 5% should be taken off the amplifier budget and added here bringing the budget to 45% instead. Loudspeakers are prioritized because they are the most important component as their job is to convert electrical signals into mechanical energy, and they need to do it with absolute precision. Therefore, their outputs influence the tonal balance and determine frequency response during music playback. Moreover, as they stand out in the listening space, you need to consider the aesthetical appeal because you and your significant other will be viewing them daily.
Conclusion
I must qualify that these budgets are not for those with deep pockets, neither are these budgets for audiophiles not in the mainstream, like those DIY enthusiasts or those preferring vintage audio or playing in the used market. The budgets suggested are all ballpark figures and are designed for cost-effectiveness notwithstanding the law of diminishing marginal returns (Read my article on Foundation/Audiophiles Principles). Practically, the buying process should best start with the loudspeakers of choice for the budget and work on the type of amplifier to best drive the loudspeakers, (read my article on Resources: Amplifier Power Calculator). However, the loudspeakers should be sufficiently efficient i.e. at least 90dB upwards otherwise you would have to spend more on your amplification, the more power that is required, the more expensive it becomes thereby affecting the practical apportioning of the budget. Thereafter, look for the matching preamplifier taking into consideration the number of inputs or outputs including connector types required for the front-end components and amplifiers/subwoofers that you may eventually want. It’s best to choose sufficient inputs and outputs that are scalable. Finally, decide on the primary source of music that you would like to have – digital or analog. For beginners, you would be wise to start with digital (streaming) and play in the used market so that mistakes would not be as painful unless you have deep pockets. Moreover, in the used market you would have better quality products for the price.