A home theater speaker system, a quality big screen TV (preferably a LCD/Plasma TV), and a Blu-Ray player are all you need to turn your living room into a virtual movie theater.

The latest TVs and home theater speaker systems can rival those in the best of movie theaters. Rather than shelling out $100s every time you want to watch a movie, why not enjoy your favorite flicks in the comfort of your own living room with your own home entertainment system?

I won't beat around the bush: setting up a quality home theater system can be quite expensive. A good 42" Plasma TV would set you back by more than $1000.

Similarly, a good home theater speaker system would cost you at least $500. Throw in $100 for a Blu-Ray player, and you are looking at a setup that will cost you at least $1500, if not more. Not everyone can afford such an investment.

But of course, if you don't care that much about buying only the best components, you can set up your own home entertainment system for as low as $500. A 32" LCD TV can be bought for less than $300, while an entry level home theater speaker system won't set you back by more than $200.

To cut costs, you can consider buying a DVD player instead of a Blu-Ray player (though you would be investing in older technology). A savvy shopper can easily set up a home entertainment system for $500 this way.

Establish Your Budget
Hence, the first thing you should do before buying a home theater speaker system is to establish your budget. Keep a figurative amount beyond which you won't shell out a penny. I know it can be very tempting to spend just $100 more and get that expensive looking Bose speaker system instead of the cheaper Samsung variant, but resist the urge. The sound quality between a $500 and a $1000 home theater speaker system will be discernible to only but the most attentive of listeners.

Mind the Details
Next, decide on the basic setup of your home theater system. Do you need it to be wireless? If yes, why? Do you understand the setup involved in installing a wireless system? Can you have wires running around the room? If yes, how do you intend to arrange the speakers in the room?

These are all important questions that need to be answered before you can make a purchase decision. For instance, many people believe that wireless home theater speakers are "truly" wireless, that is, there are no wires running around the room. The truth is that even wireless systems have quite a few wires, are more expensive, and do not differ too much from standard speakers in terms of performance.

Complete System or Individual Components?
Also decide whether you want to buy an entire home theater speaker system, or buy individual components. The former offers greater compatibility and easier installation. The latter allows you to customize components according to your needs. I recommend buying individual components only if you are very comfortable working with electronics and understand home theater systems completely. Otherwise, with this approach, you may end up with an inferior system.

Consider All Brands
Then, you should consider all makes and models. Don't walk into a store with any prejudice against any particular brand. I've often found that lesser known brands outperform their bigger, better known counterparts. But far too few people choose to ignore these smaller brands for the prestige and halo effect of a better known brand.

Read Reviews Online
Next, you should read as many reviews and ratings online of your shortlisted home theater speaker systems. Head on to Google, type in "[product name] reviews" or check out Amazon.com for customer reviews. Pay particular attention to longer reviews negative reviews - they generally say much more about the system than positive reviews.

Getting the Lowest Prices
For finding the lowest price, I recommend heading online. Sites like Amazon.com often feature much lower prices than what you will find in-store. Do your research, listen to demos in-store, but buy online - you'll end up saving a ton of money on your home theater speaker system.