I was wondering when this system would need to be upgraded?

PCPartPicker part list: http://pcpartpicker.com/p/34UjD
Price breakdown by merchant: http://pcpartpicker.com/p/34UjD/by_merchant/
Benchmarks: http://pcpartpicker.com/p/34UjD/benchmarks/

CPU: Intel Core i3-4330 3.5GHz Dual-Core Processor ($133.97 @ OutletPC)
Motherboard: Asus H81M-A Micro ATX LGA1150 Motherboard ($54.99 @ NCIX US)
Memory: GeIL EVO POTENZA 8GB (2 x 4GB) DDR3-1600 Memory ($64.99 @ Newegg)
Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($59.99 @ Newegg)
Video Card: EVGA GeForce GTX 750 Ti 2GB Video Card ($149.99 @ Amazon)
Case: Xion XON-570 ATX Mid Tower Case ($50.48 @ Amazon)
Power Supply: XFX 550W 80+ Bronze Certified ATX Power Supply ($59.99 @ NCIX US)
Optical Drive: LG GH24NS95 DVD/CD Writer ($20.44 @ Amazon)
Total: $594.84

Tweaked it a bit. For upgrades it really depends what games you play. The CPU may struggle first or the GPU might. Good thing is the mobo will support an i5 cpu and your PSU will handle a substantial GPU upgrade down the road. Usually system upgrades follow game releases, so when there's a game coming out you really want to play but cannot handle it, then you upgrade.
 

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