I'm the type of person who does not like wasting money. Because of this mindset, I make a point to review my various subscriptions once every few months to make sure I'm not paying for things I'm not using. You may decide to do something similar. And as a result, your Costco membership might land on the chopping block.
If you feel as if you're not getting enough use out of that membership, then it could definitely pay to cancel it and save yourself the $60 or $120 a year you're paying, depending on the membership you have. But before you do, recognize that you might end up sorely regretting that decision for these reasons.
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1. Your grocery bills might soar
Costco's bulk discounts can result in a lot of savings, especially for items you eat on a regular basis. In my household, for example, granola bars are consumed daily, so I'm constantly replenishing. I can get a 64-count box of granola bars from Costco.com for $11.99, costing me $0.22 per ounce. At my local supermarket, an eight-count costs $2.89, or $0.43 per ounce.
Of course, this is one example that's specific to me. But before you cancel Costco, make a list of the groceries you buy from there regularly and look up their prices at your local supermarket. You may find that it's worth keeping your membership just to save on a few staple items you eat all the time.
2. Your next vacation might cost more than necessary
Remember the days when you could book a domestic flight for under $250 without having to pay extra to pick a seat? Yeah, those days are long gone. But if you enjoy traveling, you may want to keep your Costco membership for the travel perks alone.
Costco's travel packages are super competitively priced and often come with perks you won't get by booking similar itineraries on your own, like resort or cruise ship credits. Plus, when you book through Costco, it's like getting your own personal travel agent.
3. Your next electronics purchase may not come with the tech support and warranty you want
I love buying electronics from Costco because they come with a free second-year warranty and tech support. I'm someone who's not so savvy when it comes to setting up laptops and TVs. I'm actually a bit clueless with technology, if I'm being honest. So it's nice to know that if I need help (and my very tech-savvy husband isn't in the mood to dish it out), I can call Costco.
If you cancel your Costco membership, you can easily find electronics elsewhere -- and at competitive prices. But you may not get the free extended warranty or tech support Costco offers.
4. You might miss the cheap gas
I almost always try to time my Costco shopping to when my car needs gas. That's because Costco has the cheapest gas in my town -- by far.
If you're used to filling up at Costco, you may find that you spend a lot more on fuel without a membership. And if you drive a lot, your gas savings alone might cover your membership fee.
Let's say you drive 200 miles a week and typically get 25 miles to the gallon. That means you're putting eight gallons a week into your car, or 416 gallons per year. If filling up at Costco saves you $0.15 per gallon, which it sometimes saves me, that has you paying $62.40 less per year. That's $2.40 more than what a basic membership costs.
5. You'll be hard-pressed to find a better lunch special
I can't say that I've ever gone to Costco for the express purpose of grabbing a food court lunch. But it's nice to be able to get a cheap meal on my way out the door.
If you cancel your Costco membership, you'll also be giving up food court access, since the store no longer allows non-members to make food court purchases. In other words, goodbye, $1.50 hot dog and soda combo. Farewell, $9.99 giant pizza that some might say isn't really pizza, but I find acceptable. You might miss those meals more than expected.
Okay, so clearly you're not going to hang onto a Costco membership for the occasional food court treat alone. But for all of these other reasons, you may want to consider holding off on canceling. Or, before you do, at least do some number-crunching to see if the savings you're getting throughout the year make you whole on your membership fee.
I would never tell anyone to continue paying for a service that isn't useful. It goes against my very nature. But you may be surprised at how much value your Costco membership actually offers you when you dig a little deeper into your budget.
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