Should you upgrade?

When I was 16 years old and invested $6,000  into the motor of my truck for drag racing,
While doing this a wise man told me, "No matter how fast you make it, somebody's is faster."

I feel that is applicapable to computers aswell. No matter how much money you spend or time you invest someones is better.  To cite Moore's law, the number of tansistors inside a computer will double every 18 months.  So that would mean multiple companies are developing products all in unison so it is more than likely your hardware will be outdated within a few months.  That's a fact. The trouble is determining when your computer is so far outdated that it cannot keep up with modern programming and hardware.
Here's a quick tip.....If it says Commadore 64 on it.... throw it away!

But just in case you don't have a Commadore you need to perform a system evaluation.
Ctrl+Alt+Delete and start your task manager-watch your system usage while your working.  If your computer is having a hard time keeping up thats a tell tale sign you need an upgrade!
Check system requirements for programs online like the newest video game or the newest Microsoft suite.
The newest operating systems also always require the most up to date hardware, so checking that is sure to give you a good idea about your current system. 
It goes without saying that if you want to make DVD's, CD's or Blu-ray's your computer better have a burner!
I would suggest checking consumer reports, checking manufacurer's websites and your local sales fliers!
And after doing the research if your still lost, grab yourself a book!