Since nobody else here seems to know what it's like to be a teenager stuck with a slow ass car, I'll help as much as I can.

Contrary to UNPOPULAR belief, there are many things you can do to your car FOR CHEAP to make it faster. It won't be 'fast' but it will make you smile every once in a while, and you may even surprise other drivers.

If you do all the things I say here, I estimate you'll be up 20hp for less than $200. Do NOT sh*t your pants.

Step 1: replace the engine driven fan with an electric one. This isn't hard at all. Replace it with a fan from a mid 80's front wheel drive GM car (i.e. cavalier or any buick). This results in freer revving at all engine speeds and more power. Should cost you $10-30 from the junkyard.

Step 2: cold air intake. Remove the metal hose (heated air tube) that goes into the air filter box. Take box out of car, and remove the plastic flap mechanism inside using a flat screwdriver. Reinstall the box. Attach a 2" pvc pipe to the box where you removed the metal hose, and aim it toward the front of the car. You'll need to good it onto the box to fully seal it. Immesurable horsepower increase, but every bit helps, and this will save your $300 air mass meter from being fried by the heated air. This'll cost less than $10

Step 3: high flow exhaust. There's the cheap way, and there's the expensive way. IPD sells a 2.25" 9 bend system for $190. You can make a system yourself for $40. Go to the auto parts store, and buy these parts: 2" ID X 2.25" OD adapter, 45 degree 2.25" bend pipe, 50" of straight 2.25" pipe, and a turbo muffler with center inlet and offset outlet. Buy enough clamps for the pipes, and some exhaust strapping (metal strips with holes drilled in em) to use for hangers. All of this results in a single bend exhaust which flows better than IPD's.

Step 4: Camshaft. You could buy a $200-$300 cam from an aftermarket supplier, or you can buy a Volvo 'A', 'H', or 'K' cam from a Canuck on Ebay for $30-$50. Any of those three cams will make a noticeable increase in horsepower. The 'H' is the most insane, followed closely by the 'K', and distantly by the 'A'. These cams are a tradeoff though. If you have an automatic tranny, don't get one. The tranny will be shifting down so often to make up for the low rev torque loss because of these cams' powerband that you'll kill yourself.

Beyond that you're getting into actual expensive things. You'll probably be happy enough for a while with the 135 or so HP to make do until you can buy yourself a turbo engine.

I've done all of these modifications myself, so believe me when I say they work. Since I often write long essays advising people and don't get much thanks or even acknowledgement that the person is considering what I wrote, I didn't go into depth on a lot of stuff. If you want more info, ask me specifically. Good luck in your search for power, and don't let anyone stop you from making your Volvo whatever the hell you want it to be.