Whether you're a movie and TV buff, a gamer, or just want to relax in front of the TV after a long day, a home theater is a must-have to satisfy your entertainment needs. However, many people think that setting up a home theater is costly. While this could be true, it's not necessarily so.

So, do you want your own home entertainment system but don't want to break the bank? Then check out these steps on how to build a home theater while sticking to a budget.

1. Determine What You Value

Picture of money and goods being exchanged between laptops

Since you're working on a limited budget, you need to know your priorities. Are you into single-player or online console gaming? Or do you prefer binge-watching TV shows? Do you have a partner or family that you enjoy watching movies with? Or do you like spending your alone time in front of a TV screen?

Knowing your preference lets you determine what gear you will prioritize. For example, if you're into gaming, you should go for a great console, like the PlayStation 5 or the Xbox Series X, over an expensive smart TV.

But if you're an audiophile, you should spend more on a surround sound system rather than dropping money on expensive furniture.

2. Find Your Budget

spoon with coins balancing on calculator with potato on the other end

Once you know what you like, the next step is to find how much you're willing to spend. Everyone has a different notion of what affordable is, so you should write down your target spending and stick to it.

After all, you don't want to go all out on your home theater only to find out you can't complete it because you lack funds. You can check out Amazon to get a rough idea of prices so you know how much to allocate. You can also visit these online shopping sites for the best deals on electronics if you want to save even more.

But if you can't afford to binge on brand-new items, you can scour these websites to buy refurbished electronics. You can also look around secondhand marketplaces—just ensure you know how to stay safe when using Facebook Marketplace or Craigslist.

3. Layout and Plan Your Home Theater

sample floor plan

Once you have a vague idea of the things you're putting in your home theater, it's time to plan which goes where. By putting the gear you want to add on paper, you'll know where each one goes. Furthermore, you'll realize if you're missing something once you have your home theater plan in front of you.

You can even use iPhone apps to help redesign your room using augmented reality. With this, you'll see how your home theater will look without spending a cent. With that, you might also realize that you already have some of the things you want to add to your home theater.

4. The Best Gear Is the One You Have

woman watching old TV

Since you're keeping to a budget, you can reuse some of the things you already have. For example, if you already have a correctly-sized TV and are happy with it, you don't need to buy an 80-inch 4K UHD QD-OLED.

Similarly, if you already have a 2.1 speaker system, and you're not really an audiophile, you can put the 7.1 surround sound on the back burner in the meantime. You can even reuse an old laptop and turn it into a Plex Media Server or maybe convert your old Android phone or tablet into a media server.

5. Don't Be Afraid to DIY

Motion sensor circuit on breadboard with Arduino
Image Credit: Lucky Larry/Flickr

If you're handy with tools and workshop equipment, consider going the DIY route. You can save a ton by building things yourself, especially if you already have what you need. For example, if you don't have a smart TV, you can check out these Raspberry Pi Smart TV projects to make one.

You should also look at these easy DIY TV stand builds instead of buying new furniture to save money. That way, you can spend your money on the most important things—like a gaming console, a nice TV, or a better surround sound system, whichever is more crucial for you.

6. Buy the Right Equipment for Your Space

best soundbars for home theater
Image Credit: Ronstik/Shutterstock

While you might DIY or reuse some of the things you already have for your home theater, there are some items you'd want to buy—whether new, refurbished, or used. But before spending your hard-earned money, you need to determine the right specs for your space.

For example, don't buy the biggest OLED TV you can afford if you only have a small room. According to an archived THX page, you should multiply your viewing distance by 0.84 to get the optimal screen size. So, if you're seated 75 inches away from your TV, the best TV size is 63 inches.

Similarly, OLED TVs are great in a dimly lit, light-controlled environment. But if your home theater has large windows or if you prefer watching with the lights on, you should go for a QLED TV instead. If you want to know more, these are the differences between LED, OLED, and QLED TVs.

7. Don't Skimp on Furniture

a home theater setup
Image Credit: Bear Sloan/flickr

While you could skimp on things that aren't as important to you, like a sound system or a smart TV, you shouldn't buy the cheapest furniture. Your sofa is just as crucial as your TV or whatever else you value, as you cannot enjoy your home theater if you're uncomfortable.

We don't suggest splurging on designer furniture pieces that will set you back thousands of dollars. But you shouldn't just pick up a sofa someone left on the sidewalk. Instead, choose furniture pieces that you'll find comfortable.

That means you shouldn't buy them online if you haven't tested them before. After all, we're all built differently, and what might be comfortable for your friend might not be as comfortable for you. But if you like your conveniences, consider picking one from our list of the best high-tech furniture.

8. Manage Natural and Artificial Lighting

how to build diy philips ambilight for any tv

Some of the things that could make or break a home theater build is lighting. A good lighting design can make a budget home theater appear high-end and classy, while poor, flat lighting can make even the most expensive home theater setup appear plain.

If it fits your budget, consider adding ambient lighting and spotlights to highlight key pieces in your home theater. And if your room has large windows, investing in blackout curtains is a must.

A TV backlight kit can also increase your immersion and improve the appeal of your home theater, so consider getting one of the best TV backlight and background light kits, too.

9. Upgrade Incrementally

Old and new tvs

Finally, you don't have to spend on everything in one go. Unless you have an unlimited budget, an excellent way to build a home theater is to upgrade it one at a time. First, make the basic home theater that fits your budget and delivers a good enough experience.

Once you have that, you'll eventually discover what you want to be improved. You can then buy or build them when you replenish your budget or have the time to do so. While it may take you a few years to set up your home theater just the way you want, the end product will be better as you'll see how it evolved and you're deeply invested in its final form.

Home Theaters Don't Have to Be Expensive

A home theater is a great way to unwind after a hard day's work, but it doesn't have to cost you an arm and a leg to get one. By taking our recommendations, you can start with a good build that fits your budget.