The former England skipper's predecessor Pat Fenlon shelled out £200,000 to bring Swindon striker James Collins north during the summer.
But Butcher has enjoyed his fair share of luck in the transfer market combing England's lower leagues for players during stints at previous clubs Motherwell and Inverness and plans to stick by that recruitment model in Edinburgh.
The Leith manager said: "We won't be buying players. I think I bought just one player at Inverness, that was Danny Williams for £5,000 from Chester.
"I don't spend a lot of money. I think at Motherwell I spent £3,000 on a goalkeeper, Colin Meldrum, to get him out of his contract at Forfar. That was big money for us.
"So I don't think I'll spend much money here either. I said to the chairman Rod Petrie that if we are spending big money to bring a player in, that's money we could use to bring in two or three free transfers.
"We will see. You never know. I could end up spending £75,000 on a player who is out of contract at the end of the season if we feel it is the right thing and the Mr Petrie gives me the money."
Hibs host St Mirren on Saturday but despite being linked with a string of players, Butcher does not expect to have any new faces in his squad in time for the Buddies' visit.
Among the players linked with Easter Road switches are Sunderland trio Craig Lynch, Duncan Watmore and Charis Mavrias, as well as one of Butcher's former Inverness charges, James Vincent.
But all he said ahead of the Buddies' visit was: "No-one is in or out at the moment. Sometimes it's a case of crossing people off your list more than adding to it or trying to secure players. A lot of clubs have done a lot of business but we are not aware of anything that is going to improve us.
"So for now, we are keeping our powder dry.
"But that's not to say we won't be doing anything because the last two weeks of a transfer window are normally the busiest period and when we do our business.
"Sometimes it's about waiting for the clubs down south to make their moves first, because that then frees them up to move on some of the guys not featuring much.
"There are times you speak to clubs about players early on in January but they are not available. Then three weeks later they are back on asking if we are still interested.
"I call it the Dominoes World Championships. When someone signs for a club, it frees someone else up and it becomes a domino effect. We want to take part in the Dominoes World Championships ourselves and do a bit of business if we can."