As someone who shops at Costco weekly, I can’t imagine canceling my membership. It would easily cost me hundreds of dollars a year in lost savings on groceries and household essentials like cleaning supplies and paper goods.
But you may be in a different boat. And if these situations apply to you, then it may be time to leave Costco in July.
1. You gave up your car to save money
AAA reports that it now costs $12,182 per year to own a new car. That’s more than $1,000 per month.
If you’ve recently decided to ditch your car and use public transportation, you could be saving a lot of money. But if you don’t have a car, shopping at Costco can be a pain.
Sure, you could always ask to borrow a friend’s car or use a ride-hailing app. But will you do that often enough to make a Costco membership worth it?
Keep in mind that shopping at Costco.com doesn’t quite offer the same value as going to an actual Costco store. Costco factors the cost of shipping and handling into the online prices, so you’ll generally pay more than you would if you bought the same item in-store. So if you’re planning on going to Costco.com after you give up your car and want to use Costco that way, you might want to reconsider.
2. You consistently overspend at Costco
Costco’s inventory extends far beyond bulk groceries and household essentials. You can buy everything from clothing to electronics to toys at Costco.
That’s a good thing in theory, because it’s convenient to have a nice selection of reasonably priced products under one roof. But that setup can also lead to a world of overspending on your part.
If you can admit that you almost always buy extra items when you shop at Costco, it may be time to cancel your membership. The savings you get on groceries can be completely negated by the extra purchases you make. For example, if you only save $15 a week on food, but typically spend $30 on unplanned purchases, your financial situation is getting worse.
3. The shopping experience is just not pleasant
The savings I get at Costco are enough to force me to endure the crowded parking lot, the packing aisles, and the always-long checkout lines. But if you really hate shopping at Costco, it might be time to cancel if your savings aren’t as substantial as mine.
Of course, the magic savings number that makes an unpleasant shopping experience worth it is up to you. But if you’re only saving about $15 to $20 a month, your well-being might be worth prioritizing. In other words, unless you’re a really big saver like I am, it might not be worth subjecting yourself to the torture of a weekly Costco run that you dread.
A Costco membership can provide a lot of value. But if these scenarios apply to you, it might be time to stop paying for a Costco membership.
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We are firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by the advertisers listed. The Ascent does not cover all offerings in the marketplace. The Ascent editorial content is independent of The Motley Fool editorial content and is produced by a different team of analysts. 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.
3 Reasons to Cancel Your Costco Membership in July 2024 was originally published by The Motley Fool
