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A basic Gold Star membership at Costco costs $65 a year. For an extra $65, or $130 in total, you can upgrade to Costco's Executive membership and earn 2% cash back on your purchases.
For many people, these fees are more than worth paying as they find lots of ways to save money at Costco. But that doesn't mean a membership is right for you. Here are a few reasons to consider canceling yours this November.
1. You just gave up your car
Drivers can benefit from a Costco membership in a number of ways. Not only does Costco sell some of the cheapest gas in town, but tires at Costco are affordable and come with free maintenance for years.
But if you've recently given up a car in favor of taking buses and trains to save money on transportation, then you're missing out on these perks. Not only that, but shopping at Costco in person may no longer be feasible without a vehicle.
It's one thing to take the bus to your neighborhood supermarket and haul a bag of eggs, bread, and fruit home. It's another thing to lug bulk quantities of food on public transportation.
And while you could start shopping at Costco.com instead of going to the store, the prices on the website are typically higher than what you'll pay in person. And sometimes, the online markups are high enough to negate the savings you'd expect out of Costco.
2. You can't afford to spend extra during the holidays
One pitfall of shopping at Costco is that you might fall victim to impulse purchases. That's because the store's inventory is huge. And with Costco's low prices, it can be hard to say no to temptation.
But if you can't afford to spend extra during the holiday season because you have a host of additional expenses, it may be time to take Costco access off the table. The last thing you want is to have to dip into your savings account or close out the year with extra debt.
3. You joined Amazon Prime last month and found it's a better deal for you
Amazon's October Prime Day was a big opportunity to save money. If you signed up for Amazon Prime last month to take advantage of it, you may not want to pay the $139 a year it costs on top of your Costco membership. You may also find that you're able to get more value out of a Prime membership than a Costco membership.
We just talked about the fact that Costco's online prices tend to be higher than its in-store prices. But if you prefer to shop online, Amazon Prime might make more sense for you.
Another downside of shopping at Costco is that the store tends to be perpetually crowded. If you dread the thought of going there because your local store always seems packed, why subject yourself to that torture? A Prime membership gives you free shipping on orders of any size.
A Costco membership could save you a lot of money on groceries and household essentials -- especially when paired with the right credit card. Click here for a list of the best credit cards for Costco. But if any of these factors apply to you, then November may be a good time to cancel your Costco membership and save yourself that money.
Top credit card to use at Costco (and everywhere else!)
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Add on the competitive 0% interest period and it's no wonder we awarded this card Best No Annual Fee Credit Card.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.
