The experience table on the previous page lets you know how many Attribute Points and Skill Points your character receives for each level.

Attribute Points are spent raising any of your first 5 primary Attributes (Might, Agility, Wisdom, Psyche, Constitution).  They can also be spent to raise a characters natural Armor Attributes but only if the character's race started with at least 1 Armor.  (Example, humans do not start with any natural armor in their Armor Attribute so can never add to it.  An Orc starts with an Armor Attribute of 1 so it can be raised.).  The Armor Attribute can never be raised to more than twice it starting value (2 would be the max in the case of an Orc).  Other attributes would have racial maximums as well.  If a Hobbit pours every available Attribute Point into Might, they could theoretically end up bench pressing several tons.  While it would be rediculous for a hobbit to lift several tons, it may make sense for a giant to do so. As a rule of thumb, Attributes cannot be raised by more than 10% of their current value each time a character advances in an Experience level. (Example, a character with a Might of 37 can spend up to 4 Attribute points on his Might because 10% of 37 (rounded up) is 4. Next time he goes up a level, he could spend 5 points on Might because 10% of 41 (rounded up) is 5.)

Once all Attribute Points are added, recalculate Fighting (average of Might and Agility), Dexterity (average of Agility and Wisdom) and Damage Bonus (20% of Might).

Next, add 10% of your new Constitution to Max DP.  Round up any fractions.   For example, if your character has a Constitution of 34, add 4 (10% of 34 is 3.4 rounded up to 4) to Max DP.  Add your characters full Wisdom Attribute to Max Spell Points (Max SP).

Skill Points can be spent just like during character creation.   Each skill is given 3 numbers under the Cost section.  The first is to purchase it at level 0, the second at levels 1, 2 and 3.  The third is for levels 4, 5 and 6.  If a skill has a prerequisite, you must purchase that skill at at least as high of level as the desired skill if possible.  Levels higher than 6 are possible but very costly.  Each level after 6 costs twice what the previous level costed.   If it takes 8 points to reach level 6, it takes 16 to reach level 7 and anther 32 to reach level 8.

Finally, recalculate your skills based on your new attributes and skill levels.

Reality rule 1: Most of the time, it would not be feasible to go from barely knowing a skill to being a master of it.  At the GM's discretion, only one skill level per skill can be raised per level.  (Example, a character possessing level 1 Sword skill moves to level 3.  Even though they may have enough points to raise it directly to level 3 (8 points total), they would only be able to go to Sword level 2.   At level 4, they could spend the Skill Points to move to Sword level 3.

Reality rule 2: In the "real world" it is nearly impossible to learn a new skill without some form of training or teaching.  At the GM's descretion, no new skills can be learned unless they have spent significant time with someone who already knows it (NPCs or even other PCs) or spent significant time in a library studying.

Mandatory rule 1: New spells can be purchased at the cost of Max SP as described in the character creation section.  However, after character creation, a PC must either have someone who already knows the spell train them or read about it in a scroll or book.