Spending thousands is not hard at all. Lighting, filtration and flow are usually what makes a reef more expensive than a FOWLER.
Here is my setup with rough prices.
29g tank $100
Skimmer $170
Lighting $400
Flow $230
Controller $270
Live rock $250
Reactor $60
ATO switch $30
Heater $30
Stand/canopy $200
Sand $40
RoDi unit $120
Livestock well over $500
So for just a 29g tank thats nearly 2.5k and thats not including old equipment that got replaced with upgrades. Also does not include shipping fees which was required for a lot of it.
When you add in all the other little things like food, salt, buckets, test kits, hoses etc its probably closer to 3k.
Hurts to think about but in reality it could be much less or much more depending on what your trying to achieve and how easy you want your life to be maintaining the tank.
Personally i rather spend big money on the right stuff than have to replace something less than a year later because it was not right for the job.
Yearly operation costs of my tank run around $500 are guestimated when factoring in salt, water, food, bulbs, carbon, GFO, kalk, ro filters, electricity and AC. $500 is probably on the lower side actually when you factor in all the itty bitty things.
Hope that helps you get an idea of what your getting into exactly and what you might want.