Upgrade/Modify Mitsubishi Colt?

So I'm a car enthusiast and have a decent knowledge of the workings of them. I do most of the jobs myself, breaks, cooling, air system etc anything that needs doing really.
I mainly drive Japanese imports because I think its the only way forward but I have to be careful because I'm 19 and with jap imports comes high insurance. I had a 95 Honda Civic recently but got quoted insurance so I had to sell it. I'm driving a Mazda 323 at the minute but for no other reason than its cheap.
So the point of this is that I got my hands on a 2002 1.3 litre petrol Mitsubishi Colt and want to modify it. Its great, its pretty quick given the engine size and I'm able to insure it under my dads name as named driver. I really love the car, the engine is dry, its straight and low mileage.

So what I'm asking, is how do I go about modifying it. I know a 1.3 isn't exactly ideal to be modifying but I reckon it'll be worth doing. I've a bit of money to get me started and then I'm willing to do it in stages as a project.
What should I start with upgrading, its 82 bhp at the minute but I want to change that to get as much power out of it as possible, along with the suspension, breaks etc of coarse. There's an awful lot that can be done but I done know what effect all of it has and which to do first or what is even possible on the car. Any advice is welcome.

Really a "car enthusiast" who drives an econo-box? Wait until you get your own insurance and you can be like Schumacher. In the mean time, learn how to MAINTAIN a vehicle, and be a good driver.

Go to the garage or just google it

Nice try but you must report any engine mods to your insurance company or they can refuse to pay any claims you make. In fact, insurance is going to cost you more (if they insure you at all) than if you bought a high performance car to begin with.

Hi the higher insurance premiums are due to he performance of the car so modify a car will also lead to increased premiums. If you don't declare the modification and get into an accident the insurance assessor when he looks at the damage may make further enquires. If he finds anything other than what he should find. The insurance will be cancelled and you will find yourself in court for having no insurance so a heavy fine or jail to even both.

If you are the main driver having your father insure it and just list you as a driver is called fronting and is insurance fraud. Both of you can go to jail for that one.
All modifications have to e notified to your insurance company.
Remember car makers only make things like the drive train strong enough for the engine fitted. It reduces costs and weight.
Getting it modified is a lot of expense and work.
If you really must start modifying it start with the brakes then suspension then the transmission and finally the engine.
You may also need to stiffen the shell as part of the work.

Having a drive train let go is not a cheep mistake.

Thanks to everyone for the lecture on insurance… I know well how it works. You missed the point… I'm looking to modify a small engine as a project, has anyone done it or do you have any advice on it. Thanks for the couple pieces if information on point