After a certain amount of time, computers wear out and we are forced to replace old computers with new ones. You can do a few things to an old computer to improve its performance, but it eventually will need to be replaced. As you hit the market for a new computer, you will need to create a list of your needs before you purchase the first one you see. Here are a few tips to help you get started:

First, ask yourself what you will be using the computer for. You need to understand your needs before you purchase the computer. Many people prefer the mobility of a laptop computer while others prefer a desktop computer. Generally a laptop will cost more than a desktop and you will end up paying more money for it. Purchasing a desktop may be more beneficial for your needs if you would like to get more for your money. If you purchase a laptop, you will need to purchase a wireless router so you can walk around your home and use the internet. Make sure you have enough room in your home for the desktop computer if that is what you intend to purchase.

Second, evaluate how much power you need in your computer. With each passing year, technology is increasing and computers are becoming more and more advanced. Decide on what you would like your computer to do and decide if you really need to purchase the most advanced computer on the market. Most computers of today are really powerful and can handle most anything that you need to load onto it. Only buy the computers with the features you need. If you are using the computer simply for word documents and general photo storage, there is no need to purchase a computer with memory for graphic designing and high end video games.

Third, determine the operating system you would like to have. Most computers come with Windows XP or Windows Vista. Additional programs can be purchased like Microsoft Office and Antivirus programs. If you are upgrading from an old computer, you might be able to transfer some files from your old computer to your new one. Some companies allow only one license to be purchased and will not allow you to transfer the program to a new computer.

Software can be found online and other places that are cheaper than from the manufacturer directly. Dell and other companies will sell you the needed software at full price. When you purchase a computer, most computers will come with everything you need right out of the box and you wont need to purchase extras like speakers, printers, and software. Some retailers will try to get you to purchase upgraded speakers and other things, but if you already have some from an older computer, you can stick with them. The stock speakers are also fine, so you really don't need to add on the additional cost for bass and other things.

Avoid purchasing a computer from the retail stores, shop around for the best deal. You can find a great refurbished computer or an open box computer from the internet or from a computer repair store. Some retail stores will have cheaper prices on open box computers, sometimes up to 30% off the manufacturer's price. An open box computer does come with a full manufacturer's warranty, so you won't need to worry about any problems in the future. A refurbished computer usually comes with a full manufacturer's warranty. You can purchase refurbished computers from web sites like Ebay.com and TigerDirect.com. The prices refurbished computers are substantially cheaper than you can find from the manufacturer. Be careful about purchasing a refurbished computer from Ebay.com as the deals online may not be completely truthful.

One of the best ways to save money on a computer is to build your own computer. If you know how to build your own computer, you can save anywhere from 50-70% of the cost of a new computer. If you have the know-how you can make your computer completely personalized to your needs. You can even use old parts from your old computer to save money. The parts you will need to purchase usually include RAM, hard drives, and graphic cards.

When you are purchasing a new computer, try to avoid purchasing the extended warranty. Many times the extended warranty is not a good investment. You may be able to repair many of the problems that arise with a computer within the initial warranty period and after the warranty expires. Dell and other computer manufacturers will usually give you a lifetime warranty on your hard drive and other parts. If you purchase a laptop, you should purchase the extended warranty Laptops are particularly vulnerable to problems because the fans are small and unable to cool the machine properly. If you plan on traveling with your laptop, you should purchase the warranty. Many laptops can be damaged on airplanes as they pass through security X-ray machines.

You can save money on computers by waiting for last year's model to be on clearance. Computer product cycles run from one to three years, so this means the new model of today will be on sale in about 3 years. If your old computer can last that long, then you can purchase a great computer for a killer deal. When manufacturers release their new models, they often discount the old models to make room on the shelves. An older computer usually only has 90% of the performance of a newer model, so it will run just fine.

Watch for holiday sales and rebates to get a great deal on computers. Rebates are offered by many companies in advertisements to lure in customers. Rebates often aren't taken advantage of by consumers because they don't want to deal with the hassle of filling out paperwork. If you can front the extra money to begin with, rebates are a great way to save money. Don't buy a computer just because it is on sale and comes with a rebate. Compare the true value of the rebate before you purchase the computer. The same computer might be cheaper at another store that doesn't have the rebate. If you do opt to purchase a computer with a rebate, you will need to wait for the money to come back. Some rebates will come back within 6 weeks and others can take months to come back. If you can't wait for the money to come back, it is better to buy the computer from another company.

RAM is a big seller for computers and manufacturers commonly raise the price of computers if it has more RAM. Instead of purchasing a computer with more RAM, purchase one with less RAM and upgrade it. Purchase a computer with less RAM and upgrade it. You can easily find additional memory online or in your local computer store for a minimal price. Installing the memory is pretty simple, if you decide you can't do it, you can always stop by Staples or another store and have them install it for you. This is a great way to get a top-of-the-line system for half the price.

Another great way to save money on computers is to ask for discounts. Usually colleges and universities will give large educational discounts to their students. Colleges and universities often buy a lot of computers and software throughout the year so manufacturers are prone to give large discounts to them. If your college or university doesn't offer a student discount, you can probably find one online. Do a search for educational section on web sites and provide them with proof that you are a current student. Discounts are also given to military individuals, senior citizens, and employees of certain companies. Before you purchase the computer, ask them if they offer a discount.

Some colleges and universities mandate that their students purchase a new computer. If your college or university has mandated this purchase, you can deduct the costs associated with the computer from your taxes. If the computer is a mandatory purchase, it will qualify under the Lifetime Learning Credit or the Hope Credit. If your college or university doesn't require the purchase of a computer, but you purchase one on your own, you will not be able to deduct this from your taxes.

Another great way to save money on computers is to watch for the coupons and discounts being offered by companies. Online discounts are common with companies like Dell, Gateway, and Macintosh. Check several computer web sites for discounts. The large manufacturers often offer discounts on older models right on their web site. You can also find links to refurbished computers on their web sites as well.

After you purchase a new computer, you will still need to purchase additional supplies for the computer. Software, USB devices, printers, and other attachments can quickly add up. When you purchase the new computer, ask if there are any bundle discounts for purchasing multiple items.