4 Clear Signs You Should Cancel Your Costco Membership Right Now

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Costco’s discount membership club isn’t right for everyone’s financial situation. Here’s when it might be a good time to look elsewhere for savings. [[{“value”:”

My family has signed up for and canceled our Costco membership more times than I can remember. Figuring out which items are worth buying and which are cheaper elsewhere can be challenging.

We currently have a membership, and I think it will stick this time. We’ve figured out which items we like at the store, factored in how much we save buying them at Costco, and have definitely saved more than the annual $60 membership price.

But Costco memberships aren’t for everyone. Here are a few signs it might be time to cancel yours.

1. You’re not saving money buying in bulk

One of the tricky things about grocery shopping at Costco is that buying in bulk isn’t the best option for all budgets.

If you’ve got a small family, you might find it challenging to use up what you’ve bought before it expires. There are just four of us in my family, and that was our problem with Costco shopping at first. We eventually found items we use regularly, like kombucha and seltzer water, to make buying them in bulk worth it.

But if you’re throwing away unused food or don’t have enough space to store your Costco items when you bring them home, a membership may not be worth it.

2. You’re not using the additional perks

I’m guilty of this one, but many people get the full benefit of a Costco membership by using perks like discounts on prescription drugs, travel, and even insurance.

For example, Costco says its discounted prescriptions, which can be obtained from pharmacies nationwide, can save members up to 80% off the original costs.

Similarly, if you’re not occasionally using Costco’s travel discounts, then you’re not fully using your membership. For example, Costco Travel currently offers a trip to New Orleans with four nights at a hotel for the price of three, discounted valet parking, and a $50 resort credit if you book by June 30 and travel before the end of the year.

3. You’re overspending

Some recent data shows that Costco members save 33% by shopping at the discount warehouse club versus conventional grocery stores. But it’s entirely possible to blow your budget on impulse purchases, too.

If you’re the type of person who sees a discount and feels the need to make a purchase, a Costco membership could cost you. For example, the current $49 discount on an iPad Pro at Costco is a good discount, but it still has a hefty price tag of $1,249.99.

If you find yourself buying big-ticket items too frequently at Costco because you think you’re getting a good deal, you might want to consider canceling your membership.

4. You don’t buy Costco gas

This isn’t a dealbreaker for everyone. I don’t buy my gas exclusively at Costco, but my family fills up with Costco gas at least once per month.

The average gas price is $3.73 per gallon of unleaded gas right now, up from $3.64 this time last year. If you’re not taking advantage of discounted gas at Costco, you’re missing out.

Costco gas prices can be up to $0.30 cheaper than the national average. With the average vehicle using 489 gallons of gas per year, filling up exclusively at Costco could save you $146 annually. Your membership also includes additional car perks, like free tire installation when you buy four tires from the Costco Tire Center.

By buying some of our gas at Costco and buying bulk items, we save enough at Costco to justify the membership fee. But everyone’s budget is different. There are plenty of other ways to save on groceries, like shopping at Aldi (my personal favorite).

If you’re still deciding whether to cancel your membership, look at your Costco spending over the last three months and see how much you’ve saved from those trips. If you haven’t, or have in fact overspent, it might be time to cancel.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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