Sheffield Wednesday are set to pay £10m for on-loan striker Jordan Rhodes.
"I don't need anywhere near that sort of money. Half that figure will do me," said Warnock.
Warnock has outlined his proposals to owner Vincent Tan and hopes the Malaysian businessman backs them.
After losing 1-0 at home to Norwich, Warnock praised his men for their performance against what he described as an expensively assembled Norwich City side.
He revealed the Bluebirds' plans for the summer were already well advanced and that a rapid response would be key when the window opens.
"We are already working to a figure that is acceptable to me and I think is acceptable to the board and owners," Warnock told BBC Wales Sport.
"We've got two or three players we'd like to bring in, which we will try to do.
"We need to do business straight away I think, not wait until the season starts.
"We've got a good idea who we want.
"Things change when someone comes in and buys one of the players you want, but in general we've got a good idea who we need."
Cardiff City manager Neil Warnock has outlined his cut-price transfer plan, saying he does not think it would take big money to launch a promotion bid in 2017-18.