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Shopping at Costco can save you big bucks, but it’s not a good fit for my lifestyle. Here are five reasons a Costco membership doesn’t make sense for me.
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There are a lot of reasons I love Costco, like its cheap gas, its Kirkland Signature products, and its food court. Costco has a well-deserved reputation as a bargain-seeker’s paradise. But even though the membership price is reasonable — starting at $60 a year — I refuse to buy a membership. Here are five reasons a Costco membership isn’t right for my personal finances at the moment.
1. I live alone
The No. 1 reason I won’t buy a Costco membership is that I live alone, and if I bought food in bulk, I’d end up throwing a lot of stuff away. I also don’t have a ton of storage space, so buying massive quantities of items like toilet paper and toothpaste would only add clutter to my home.
2. I’m a failure at meal prep
Even though I live alone, shopping at Costco could be worth it for me if I were one of those meal-planning pros who blocks off an afternoon each week to do prep work and freeze meals. But I’ve failed miserably in my past efforts at meal prep. Though I aim to get better in this arena for 2024, I’m starting small.
I intend to buy enough groceries so that I can make several easy-to-cook meals each week, but I’m also giving myself a bit of room to order takeout a few times a week. Since I know I’m not the type of cook who will invest significant time in preparing meals ahead of time, a Costco membership just doesn’t make sense for me.
3. I don’t drive much or rent cars often
I’m fortunate to live in an area where I don’t need to drive a lot. Aside from a few sweltering months here in the Florida summer, I usually prefer to ride my bike instead of driving my car. I also prefer to take Uber and Lyft rides when I travel, instead of renting a car.
If I were frequently driving, the gas savings alone might be enough to cover the cost of a Costco membership. Likewise, if I regularly rented cars, Costco’s car rental program could tip the scales in favor of buying a membership. But since I’d rarely take advantage of these perks, I’m holding off on a Costco membership.
4. I’m prone to silly impulse buys
Just as I know I’m prone to buying lots of food and never cooking it, I also know that I’m prone to loading up on impulse purchases, like snacks, dog toys, and clothes I don’t need. Because I don’t need another source of temptation, I’m skipping the Costco membership for now.
5. You can use some Costco services without a membership
If you want to load up on $5 rotisserie chickens or buy 40 rolls of toilet paper at a time, you’ll need to shell out for a Costco membership. But several Costco perks don’t require a membership. For example:
Depending on your state, you may be able to buy alcohol at Costco even if you’re not a member.You can get prescriptions filled at Costco pharmacy (though you’ll need a membership to take advantage of exclusive discounts through the Costco Membership Prescription Program).You can get eye exams through Costco Optical without a membership, though buying eyeglasses and contact lenses requires a membership. If you get a prescription, you can take it to another eye-care professional.
Sadly, I don’t live in a state where you can stock your home bar at Costco without a membership. I also have health insurance that requires me to fill my prescriptions at a pharmacy other than Costco, and I don’t wear eyeglasses. But if these are your main reasons for joining Costco, it’s worth researching whether you could use these services without a membership.
Is a Costco membership right for you?
Don’t get me wrong: A Costco membership can be a great way to save money, depending on your situation. If I were feeding several mouths and lived within a few miles of a warehouse, a membership would be an easy call.
Consider whether your consumption habits are a good fit for buying things in bulk. If you have limited space, you don’t have much time to devote to meal prep, or you don’t live near a warehouse, you may be better off saving your $60 to avoid buying things you’ll never use. With the right grocery credit card, you may be able to earn perks while shopping somewhere that better fits your needs.
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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.Robin Hartill, CFP® 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.
