They are right about maintenance before mods. After the engine is all tuned up and free from any leaks you should work on freshening up the suspension and bushings. That will make the car feel all around better. Then just save up and research.
However, search for a first gen b16 cable tranny when you are ready to do mods. That'll give you a nice kick in performance, doesn't require a tune, doesn't mess with SMOG laws, cops won't notice it...etc.