1989 lx mustang help

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Welcome to stangnet, now you have asked one of the most, ahhh, lets see, how do I put this.
Let me put it this way:
How fast can you afford to go?
Now don't get the wrong impression, that is a very true stantment. Also do you:
Have a place to work on it
Have the knowledge or the will to learn
Here is my advice.
Buy a nice daily driver to get you back and forth to school/work, take auto shop classes (do they still offer that?) plan a build for this car based on what you want to do with it.
That's what I would do at your age knowing what I know now.
 
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Buy a clapped out 89 gt... transfer the rear, front spindles and brakes, engine, engine wiring harness, computer, and k member.

There is no " cheap " . If your 4 cylinder is 5 speed you could get away with just a complete gt engine and a 89 gt engine harness and computer with an early diesel ranger ( 84 ) pilot bearing. Part number is mogul s202. Your suspension will be taxed and your brakes will be inadequate. The rear 7.5 may hold up for a little while...the car will drive. It used to be easier and cheaper to swap to carbereted but those days are gone.

The cheapest way is to buy a complete 89 parts car.