Overspent at Costco in 2023? 3 Ways to Avoid a Repeat

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It’s easy to go overboard with Costco shopping. Read on for ways to avoid doing so in 2024. 

Costco is known for its competitive prices. And because of this, a lot of people tend to assume that shopping there will automatically equate to saving money.

However, since Costco’s inventory is so vast, and because the deals there tend to look appealing, it’s easy enough to go overboard on spending when shopping at your local warehouse club store. If you spent way too much money at Costco in 2023, then here are some steps worth taking to avoid a repeat situation this year.

1. Make a list when you go to the store instead of just winging it

Wandering around a store like Costco can be a dangerous thing, financially speaking. There are just so many deals to capitalize on.

If you know for a fact that you spent more than intended at Costco last year, then going forward, pledge to shop with a list to help yourself stay on track. More so than that, pledge to only visit aisles that contain an item on your list. If you never enter the snack aisle, you won’t be tempted to buy a giant vat of peanut butter pretzels.

2. Shop with a friend to keep yourself in check

Sometimes, it’s hard to exercise self-control when you’re left to roam the aisles of a store like Costco solo. If you tend to struggle with impulse purchases, then it’s a good idea to bring an accountability buddy along when you shop — whether it’s Costco, Target, or another retailer whose inventory tends to tempt you.

That said, you’ll need to choose the right shopping partner. Your neighborhood friend who’s careless with their own money probably isn’t a good choice. But if you have a budget-conscious parent in your friend group with habits and financial goals that seem similar to yours, then they might be a good person to try to shop with.

3. Downgrade your Costco membership

Costco offers two types of membership. A basic membership costs $60 a year, and an Executive membership costs $120 a year but offers 2% cash back on all Costco purchases.

An Executive membership can make a lot of sense when you shop at Costco frequently. Once your annual spending exceeds $3,000, you’ve come out ahead financially after paying an extra $60 for your membership upgrade. But having an Executive membership might also tempt you to spend more, the same way some people might think to themselves, “Hey, let me put some extra charges on my credit card for the reward points involved.”

If that’s a mentality you can own up to, it could make sense to downgrade your Costco membership to a basic one. The good news is that you can do so at any time, and Costco will refund you the price difference.

Going this route could mean losing out on some cash back at Costco. But you’re better off forgoing $90 in cash back than spending $600 extra in the course of a year.

The purpose of joining Costco is to save money — not waste money. If you feel as if you’ve been spending too much at Costco, employ these tips to break that habit in 2024.

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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.Maurie Backman 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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