I test audio gear for a living — here's how to make a great home stereo system for under $500

Orange Kanto Ren pair in front of a blue wall on a pair of stands
(Image credit: Tom's Guide)

Most people think 'HiFi' is synonymous with the word "expensive," but it's perfectly possible to make a system that's cheaper than one of the best smart speakers — a Sonos Era 300.

It's easier said than done, of course, but with some strict budgeting and some clever spending, you can build a full system for under $450. So let's get started.

Hot tips

Buying a completely new system can always seem daunting, so to make life a bit easier for you, I've laid out some tips to help you get the best bang for your buck.

  • Tip #1: Buy second-hand

If you don't mind buying older devices, this is a really good way to save some money.

Just remember that legacy audio systems probably have experienced their fair share of wear and tear. That's extra risky because there aren't any after-sales help systems when you buy second-hand, so you need to be extra cautious. Make sure you look out for clear images and highly reviewed sellers.

  • Tip #2: Combine components together

If you had unlimited money, you'd be buying separate components out the wazoo. It's the best way to get the best sound possible, but it gets expensive fast.

When you're trying to get the best sound possible, you want to combine components so that you don't have to buy multiple things — an amplifier with a built-in streaming device, for example.

  • Tip #3: Spread the cost out over time

Don't buy everything all at once. Start with what you need — an amplifier and speakers — and then buy extra things like turntables and CD players later on down the line.

That means you've got more money at the start for the core of your system, and then you can save for nice separates later on.

The system

Close up of WiiM Amp in silver

(Image credit: WiiM)

So with all those tips in mind, let's put together a system that beats out the Sonos Era 300, while sticking to that $450 price tag. It's not easy. There aren't many devices out there that will land within our budget, but we'll do our best.

We'll start with the amp. I want to make sure we've still got that streaming system from the Sonos Era speaker, but I don't want to buy a separate device for it to work. With that in mind, I've opted for the Wiim Amp. It's got plenty of power to drive some great speakers, and the Wiim smart system is very good indeed.

Wiim Amp
Wiim Amp: $299 at Amazon

The Wiim Amp packs in some impressive streaming capability along with some excellent sound. It's that which will break down the cost barrier to audio in the US — just add speakers for room-filling, stereo sound.

Then we need some speakers. This was trickier — our $299 amp has only left us with $150 — but we've got some great options out there.

I've opted for the Polk Audio Monitor 15, a fantastic pair of bookshelf speakers that are going to sound spectacular.

Polk T15
Polk T15: $149 at Amazon

The Polk Audio T15 are excellent bookshelf speakers that sound amazing. They don't take much power to drive, and they have front-facing bass ports for some lovely, bassy sound.

Listen privately with some headphones

Sennheiser HD 600 in the factory

(Image credit: Sennheiser)

Alternatively, you could forgo a home stereo system for a pair of critical listening headphones. If you go this route, you'll get even better sound with more intimacy and immersion. The trade-off? You can't share it with your friends or visitors.

So we've got $450 to find some headphones and a way to connect them to our device. We're going wired — sound quality is our priority — and that means we'll need to find some sort of dongle so that we can plug them into our phone. That's easy enough.

We'll go with the iFi Go Link Max, a little USB-C dongle that acts as a high-quality DAC, as well as adding that all-important headphone jack. It's not much, $79, but it's one of the coolest little devices I've had the pleasure of testing.

iFi Audio Go Link Max
iFi Audio Go Link Max: $79 at Amazon

This little guy adds a 3.5mm connector for your headphones, as well as a balanced connector for audiophile headphones. The DAC inside is top quality as well, adding even better sound quality to the music that you're listening to. It connects to Android and iOS devices alike.

Now we're going to need some headphones. We've got $370 to play with after buying our dongle DAC, giving us plenty of cash to drop. See what I mean about this being much cheaper than buying a full system?

My headphones of choice at this price are the classic and venerable Sennheiser HD 600. They're the audiophile headphones of choice the world over, providing spectacular sound and a stunning soundstage.

This is cheating a little. Full price, they'd be out of our budget, but they're generally found for around $299. That means they leave us with a little change so that you can get a really nice bottle of whisky for those listening sessions. Just remember that the HD 600s are open-backed, so you're going to hear everything going on around you — and everyone nearby is going to hear what you're listening to.

Sennheiser HD 600
Sennheiser HD 600: was $499 now $288 at Amazon

The HD 600 are some of the most popular headphones for critical listening around. They're very neutral and offer some of the best analysis-driven sound you'll ever hear. Users who like their music loud will want an extra amplifier, but most everyone else is going to fine without one.

Remember that this is a hobby

Hopefully, I've shown that you don't need to blow the budget, however. Even better, once you've started your home audio system, you can add more devices as and when you can afford them. A CD player, for example, or one of the best turntables.

The most important thing to remember is that this is all supposed to be fun. Cheap stuff can sound great and get you closer to your music. I know how easy it is to glance at more expensive equipment with jealous eyes. But the best music system is the one that you've got right now — don't let anyone stop you from enjoying your tunes on a system that you think sounds good.

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Tammy Rogers
Audio Editor

Tammy and her generous collection of headphones have found a new home — Tom's Guide! After a two-and-a-half-year stint as iMore's resident audiophile, Tammy's reviews and buying guide expertise have more focus than ever on Tom's Guide, helping buyers find the audio gear that works best for them. Tammy has worked with some of the most desirable audio brands on the planet in her time writing about headphones, speakers, and more, bringing a consumer focussed approach to critique and buying advice. Away from her desk, you'll probably find her in the countryside writing (extremely bad) poetry, or putting her screenwriting Masters to good use creating screenplays that'll never see the light of day.

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