Speaking from personal experience, just started my 2nd season at Pompey, we finished 10th last season.
I signed Juanpa on a free for right back, played superbly, also signed Quinton Fortune on a free. Played quite well and can play pretty much anywhere in midfield.
I also had quite a few loan players, didn't have to pay any wages. The ones that excelled for me were Corry Evans(Man U) absolutely superb, i'm now his favoured personnel and favoured club and he's back for a 2nd loan spell, Chris Smalling(Man U), Jack Colback(Sunderland).
I also signed Alex Smithies in January after getting rid of Utaka and a few reserve players.