Dave Ramsey Has 2 Tips for Saving Money at Costco. Will They Work For You?

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Don’t shop at Costco again until you’ve read this Ramsey advice. 

Costco is one of the most popular bulk-buying stores in the United States. Many people give their credit cards a workout buying Costco’s signature Kirkland brand items or indulging in the club’s famous $1.50 hotdog and soda combo.

For most people, though, the purpose of joining Costco is to save money on the things they need to buy by taking advantage of bulk discounts the warehouse club offers. But in order to actually end up with more money in your bank account due to your Costco membership, you need to be a smart shopper.

Finance expert Dave Ramsey has suggested two tips to help you do that. Here’s what they are, along with some advice about whether they will work for you.

1. Only buy products you’re confident will be used up

Ramsey’s first tip may seem obvious, but it can be harder to follow than you might think.

“Only buy things you know you’ll use,” Ramsey said. He warned specifically about not buying things like produce or herbs and spices, which are likely to spoil (or lose their potency) before you have time to use up all that you have purchased.

“While it might be tempting to grab that 80-ounce jar of mustard, ask yourself, ‘Am I really going to eat that?,'” Ramsey suggested. “You don’t want to buy in bulk just to end up with the ‘bulk’ of it in the trash. Stick to buying things you know you or your family will eat or use.”

To follow this advice, carefully consider your family’s consumption habits. Think through, for example, how much pasta sauce or how many boxes of crackers you use in a month. Then check the expiration date on the items you’re buying. If you aren’t 100% confident you will be able to use every bit of the bulk items you’re buying, put them back on the shelf (or find another family to go in on a shared purchase that you will split up).

2. Compare costs among multiple stores

Ramsey’s second suggestion is to make sure you’re actually getting the best deal when you buy at Costco (or other warehouse clubs selling bulk items).

“Compare prices,” Ramsey urged, suggesting that you look at the price per unit offered for a product at Costco and elsewhere to see which really comes out to be the lowest possible cost. You can’t assume that just because an item is sold at Costco — or sold in a bigger box — that the per unit price is actually lower than what you might get at another store.

By taking these steps, you can avoid wasting money on things that are too expensive or things that will inevitably expire before you get a chance to use them up. Your Costco purchases will be limited to things you really need that you would have paid more for elsewhere, and you’ll get your money’s worth out of your warehouse club membership. So, try them out before you head back to Costco for your next big shopping trip.

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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.Christy Bieber 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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