cogadh: I just want to add my agreement and emphasis to this advice. I bought a decent "starter model" desktop PC almost 10 years ago and have slowly upgraded individual components as I either needed or wanted to. I never once spent more than $100 on any individual upgrade and usually kept it under $50 (I never buy this year's model, always get the best I can of last year's model). It has always performed well enough to play most new games right up until the last year or two and it took less money over the course of the ten years to keep it that way than it cost me to buy the original PC in the first place. Unfortunately, it has finally hit an upgrade roadblock (can't upgrade anything else without replacing the mobo, can't replace the mobo without also replacing the RAM, video card, processor, etc.), so I will very soon have to buy a new starter machine for my next decade of budget upgrades... though this time I might try to cut it off after 8 years.
Thanks.
Yes, I forgot to mention it can be efficient in certain situations to start off with a good base and slowly add/upgrade components over time. Even if you buy a lot of great stuff at once, there's usually room for an upgrade or two down the line if that's what you're after.
I don't recommend going 10 years with the same motherboard, certainly, but it is possible.. 8/10 years is impressive, though, sir, and I commend you.
About the latest vs. older stuff, there are times it's best to get the newer stuff, though, if you can afford it. Spending $300 on a piece of hardware may last you four years, for example, vs. a $200 piece that will last you two. At the same time, yeah, sometimes the latest is just silly and meant for people that need the absolute best and don't care about the cost.