Allardyce, who replaced the sacked Alan Pardew on December 23, has had sufficient time to assess his squad after spending four games in charge of the first team.
The former England boss has yet to pick up a win in the Premier League - losing twice and drawing once - while Saturday's 0-0 away at Bolton in the FA Cup third round showed there is major improvement needed.
Palace are looking to be active in the January transfer window and their 62-year-old manager revealed he would be discussing plans with chairman Steve Parish over the next couple of days.
The Eagles will not want to needlessly splash the cash but Allardyce admits more money may need to be offered in order to keep the struggling club, who are just a point above the relegation zone, in the league.
"We shall have some money to spend but it will have to be more than a bit at this level now because the prices of players are astronomically high, particularly players in this country," he said.
"We will have to pay what we have to pay if we can identify the right player which makes us better."