I saw that I needed to update and I emailed the guy who sold me the template and I am copying his response and I am concerned that not updating will cause me problems in the future (read response and please advise): Updating wordpress may break functionality of the theme we developed as it has been tested for the latest version. We can update it for you or give you the ability to do so. If we do it we will fix it if we break it , if we give you the ability to do so we do not offer free support for client run changes or alterations to the core files. Unless the new wordpress update provides some needed functionality it is perfectly fine to run an older version of wordpress. We have clients running a fully functioning website and CMS system through older versions of wordpress.
We have other clients who have updated to newer versions and have had to revert it back because we did a lot of customizations to the core files that gets over written during an update and they had to pay us to fix.
Your site does not have any crazy customizations so updating does not pose a significant risk however I did want to let you know what can happen.