The 58-year-old recently agreed a two-year contract extension to remain at Upton Park, and he has now revealed the club are beginning to explore ways of improving the squad
The 58-year-old, who recently agreed a new two-year contract, has confirmed he has funds to spend but has conceded there is a limit to what he can splash out.
Andy Carroll has been linked with a permanent move to Upton Park after a season on-loan at the club from Liverpool, and Allardyce believes it is important the strength of the squad continues to improve.
He told the club’s official website: “The planning has started, but it's about affordability for us. On the money side of it, there is some there but it's not fortunes.
“We've got to improve the team that we've got, which has played to its maximum. A lot of the team that we've got were free transfers and we've got to go from that to getting better players.
“We've got to go into the market for them and increase the overall salary and wage budget and transfer fees because we've got to try and get better.”
West Ham currently sit in tenth spot in the Premier League and host Reading in their final game of the season on Sunday.