RAM is a common go to upgrade from the past for additional performance that isn't applicable for many systems today. In the past RAM was so expensive most people couldn't afford to have enough so adding more RAM if you could was a no brainer. Not having enough RAM does degrade performance quite a bit. These days RAM is so cheap many typically have 4GB which is more than enough for the average user and adding more does little to nothing for the performance of the system. For higher end users such as Gamers or Graphic Artists having 8GB will typically be enough.
In your computer there are two types of memory. The RAM that I discuss in the paragraph above which is fast short term storage and gets erased when the computer is shut off or restarted, and then there is slow long term storage called your hard drive and it keeps all of the information when your computer is shut off or restarted. RAM is very fast, hard drives in comparison are very slow. When you turn your computer on, your computer attempts to load everything it is going to need off of your slow hard drive into your fast RAM. If you don't have enough fast RAM to hold everything your computer needs to operate, your computer uses a portion of your slow hard drive for virtual RAM, and that is when you take a performance hit for not having enough RAM.
If you have 16GB of RAM, and your computer uses 4GB or less to operate, you will have 12GB of RAM that will mostly sit there and do nothing. The money spent on that extra RAM would have been better spent else where such as a solid state drive.