For me, paying $130 a year for an Executive Membership at Costco is a no-brainer. The money I spend comes back to me — and then some — in the form of savings on bulk groceries and household supplies.
But just because a Costco membership makes sense to me doesn’t mean it’s right for you. Here are a few signs that it might be time to cancel yours.
1. You have moved far away from the nearest store
I shop at Costco almost every week. And that’s doable since my nearest Costco store is about 15 minutes away.
But if you’ve recently moved and no longer have easy access to Costco, it might be time to cancel your membership. You can tell yourself that you’ll make the 40-minute drive there and back several times a month. But if you’re busy, your membership could go to waste.
Also, remember that your time is money. Even if you can technically go to Costco often enough to justify a membership, you don’t want to waste precious time on the road when you have things to do.
It might make sense to stick with a regular supermarket if there is one less than five minutes away. Or you might want to join a different warehouse club if there is a store much closer than where you live now.
2. You’ve repeatedly gotten into a credit card crunch due to overspending at Costco
It’s fun to browse the Costco aisles and check out the store’s changing inventory. But if you’re spending too much at Costco to the point that you’re going into credit card debt, it’s time to think about canceling your membership.
It’s one thing to make the occasional impulse purchase at Costco that adds $15 to your weekly grocery bill. But it’s another thing to spend a few hundred extra dollars at Costco every month — and then end up with a credit card balance you can’t pay off because of it. If you just can’t seem to break that habit, staying away from Costco may be a much better bet for your finances.
3. You throw away most of the food you buy in bulk
There is a world of potential savings to be had when you buy groceries in bulk at Costco. But if you find that you are consistently throwing away a large portion of your purchase, you are probably not saving money. In fact, you may be wasting money repeatedly.
Be honest about your bulk food needs and cooking habits. Not everyone has the time or patience to prepare meals at home. If you can afford to buy takeout five nights a week, there’s nothing wrong with that. But if that’s the case, there’s no point in constantly buying bulk food from Costco that will only get thrown away.
And if it doesn’t pay to buy food at Costco, make sure the other items you buy there save you enough money to justify a membership. If not, it might make more sense to cancel and look for deals on items like toilet paper.
It’s OK to Cut Ties with Costco
I can’t imagine not shopping at Costco all the time. But I have the advantage of living close by and cooking quite a bit at home. I also have a larger household, so it makes sense for us to buy groceries in bulk. And while I do make my share of impulse purchases at Costco, it’s not so bad that it’s hurting my finances.
But you may be in a very different situation on all fronts. And so, don’t hesitate to cancel your membership if it’s just not right for you.
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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 separate from The Motley Fool editorial content and is created by a different team of analysts. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.
Cancel Your Costco Membership Immediately If These 3 Things Apply to You originally published by The Motley Fool
