Jamie Carragher believes Jurgen Klopp will need to strengthen the Liverpool squad to push for Champions League qualification.
Klopp was confirmed as the new Liverpool manager on Thursday evening.
Carragher is confident Klopp will be given the funds to make new signings in January, but has expressed caution to Liverpool fans that they may not see major deals until next summer.
"He's certainly come with a fantastic CV," Carragher told Sky Sports News HQ.
"He needs to [make signings]. I don't know if he's been promised funds, but Liverpool spent a lot of money in the summer.
"The owners are not Roman Abramovich types. A lot of the club's money for this season may have been spent [already], and it may be next summer when he can get the players he really wants.
"January is always a difficult time.
"But if he can get one or two players in that he thinks can push Liverpool on, I'm sure the club would allow him to do that.
"When a manager is talking to a club about joining, he absolutely wants to bring in his own players because things have not been going well."
Brendan Rodgers was sacked just hours after the 1-1 draw in the Merseyside derby, a result which leaves Liverpool in 10th place with 12 points from their opening eight Premier League matches.
Carragher believes the club will still be targeting Champions League football and a trophy this season, although if Klopp is the man to replace Rodgers, Carragher says he will be given time to rebuild the squad even if things do not go to plan between now and May.
"The club will be thinking, with the input from the new manager, they can take this Liverpool team to the top four," said Carragher. "That has been the target for Brendan Rodgers these last three years.
"There's not too much distance between the top four now, and I think they will be trying to bridge that between now and the end of the season.
"As a player, you want to get medals in the cabinet. For the owners now, it's Champions League football.
"I don't think it will be the end of the world if they don't get either of those because it will be a two or three-year spell to try and build it up."