I haven't spent all that much on rods & reels. I got the basics, mid priced stuff, it works great for me, and I kept it a long time. If you add it up over the years the money I've spent on tippet, flies, etc. adds up, but it's not a huge expense. Where the money comes in...
1. Travel - I have trout fisheries close, and I use them some, but I like to travel and the best waters are pretty far. Gas money, especially now, and often lodging. If you look at my yearly fishing costs, this is the bulk of it. And I don't even go out of state very much, this is just like weekend trips to central or northern PA, or day trips up to the Poconos.
2. Waders & boots. I had these things waaaayyyy back when I was a spin fisher too. But having recently outfitted a significant other with the basics, this is far and away the biggest $$$ "hurdle" that somebody new to the sport almost has to have. Yes, you can wet wade in mid summer. But a non-fisherman who decides they want to start fishing and actually get into the sport a little bit, going to buy waders and a decent pair of wading boots, at the same time, is more than a little painful on the wallet. And it's dang near a necessity. And it becomes a necessity well before that person really knows if they want to stick with the sport. The cheap ones wear out and need replaced quickly, like year 2, and the expensive ones last but are real steep up front.