First Car

So i just bought my first car; an 89' corrolla SR5. 300,000 KM'S, manual trans. , rust around the wheel wells and the side skirts. but besides from the rust its in great condition. seller gave me 10 years of receipts and records so it has been taken care of.
Once the body is fixed i want to get new shocks and springs, and get the engine rebuilt. i can do the suspension work but i am going to have to pay for the engine work.what kind of money am i looking at here?. i have $1000 for the suspension upgrades and $2500 for the motor.
I am going to be driving it mostly on rough cottage dirt/gravel roads. pretty much learning to rally drive/drift/go fast in a FWD car.

Any help would be great, i dont want to waste my hard earned money.
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Man in October I bought myself what seems to be the same car with the same body work problems just mine is an 88. I love the little guy. I've been constantly putting things on it. I hae ordered the GTS sideskirts and almost about to buy the spoiler. One thing I suggest is don't bother with an engine rebuild, with $2,500 you can easily afford a a used engine that has less miles and more power (3SGTE, 4AGE ect.) I unfortunatly don't have $2,500 and went with something more simpler, which you might want to consider as well if its your daily driver, is the 4AFE, which is an identical motor to the one we have just fuel injected, it has about 10 more HP and is a lot more reliable. I picked this motor up for a $100 dollars from an elderly women that just wanted a new car, so I ended it up with a 1991 Toyota Corolla, which is perfect cause I'm going to need the wiring harness. Have fun and remeber to spend wisely and you could end up with a fun car.