it will take a lot of time to save up that much since im just a kid with no job and i need a good pc, ive saved up all of that money for like 2 years
Not sure what else to tell you, but trying to upgrade a 13 year old PC is not a good start.
-The E2160 is a slow(1.8ghz) dual core cpu. Your 'upgrade' options are just more dual cores, and they're not what I'd consider fast anymore.
-4GB ram limit. When the OS alone can use up to 2GBs, it won't take much to bog down this system.
-Nvidia 8600 GS: You may be able to put a GTX 700 series or Radeon R9 series gpu in there, but it would all be for naught, since your cpu + ram would hard bottleneck it anyway.
-Power supply: An old system such as this has to be using a rather lightweight unit. It wouldn't be able to cope with a more modern gpu.