How do you determine how much to spend on speakers

Yikes....5K in plenty. The speaker-room interface is probably the most critical part of your system. Remember to budget for room treatments as it doesn't matter how much you spend on the rest of your system if the room is bad. The most expensive system in the world will sound like crap set up incorrectly without regard for the room.

Decent speakers w/crap electronics=crap. Here is my example.
Before i begin let me just say that I plan to sell my current speakers (Bose 901's MKVI). They were the first item purchased when I decided I want a good stereo. I always wanted a pair since I was a kid in the '70s. So I bought them without even an audition. (very bad idea). Hooked them up to a Pioneer Elite VSX52. Very disapointed. I hated them. So I bought a McIntosh MC-2205. They sounded much better, but I still did not like them at all. Recently I bought a McIntosh-252 and what a dfifference! They actually sound pretty good. Even at very high volumes. So my point is that even though the speakers may be the most important part of your decision, without quality amp, even the best speaks in the woirld will disapoint. I am looking for the 'right' speakers now. Guess I need to spend about $3-4k...and all I came in here is for some milk and a loaf of bread....

Sensitivity rating on the speakers should be a consideration if you like your music loud and you are on a budget. Less $$$$ to spend on an amp capable of driving your speakers to a satisfying volume.
Another note.....I think on a modest system interconnects and speaker cables are the last thing I would spend big bucks on. Blue Jean cables makes good stuff for a very reasonable price. Keep in mind that I am new at this too, but I believe that to be sound advise based on my experience.

I just replaced the 901s with a pair of Klipsch RF7s. Wow! What a speaker!!! Blows the 901s back to the 70s where they should have stayed. For $1800. I am very happy.

i would call klaus at odyssey and tell him you want a 5k digital system. you could probably get his top of the line speakers with that. then you have 45 days to decide if it blows you away, and i'm sure it will. the components are all trade in approved if you want to upgrade later. i'm sure he can suggest an economical cd player that "works" with the rest of the system. i don't own any odyssey gear but i have heard it plenty at my cousins house and it is very good. if i had known then what i know now i would have gone that way, the price is right and you get great synergy.