5 Reasons I Refuse to Buy a Costco Membership

Shopping at Costco can save you big bucks, but it's not a good fit for my lifestyle. Here are five reasons a Costco membership doesn't make sense for me.

5 Reasons I Refuse to Buy a Costco Membership

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There are a lot of reasons I love Costco, like its cheap gas, its Kirkland Signature products, and its food court. Costco has a well-deserved reputation as a bargain-seeker's paradise. But even though the membership price is reasonable -- starting at $60 a year -- I refuse to buy a membership. Here are five reasons a Costco membership isn't right for my personal finances at the moment.

1. I live alone

The No. 1 reason I won't buy a Costco membership is that I live alone, and if I bought food in bulk, I'd end up throwing a lot of stuff away. I also don't have a ton of storage space, so buying massive quantities of items like toilet paper and toothpaste would only add clutter to my home.

2. I'm a failure at meal prep

Even though I live alone, shopping at Costco could be worth it for me if I were one of those meal-planning pros who blocks off an afternoon each week to do prep work and freeze meals. But I've failed miserably in my past efforts at meal prep. Though I aim to get better in this arena for 2024, I'm starting small.

I intend to buy enough groceries so that I can make several easy-to-cook meals each week, but I'm also giving myself a bit of room to order takeout a few times a week. Since I know I'm not the type of cook who will invest significant time in preparing meals ahead of time, a Costco membership just doesn't make sense for me.

3. I don't drive much or rent cars often

I'm fortunate to live in an area where I don't need to drive a lot. Aside from a few sweltering months here in the Florida summer, I usually prefer to ride my bike instead of driving my car. I also prefer to take Uber and Lyft rides when I travel, instead of renting a car.

If I were frequently driving, the gas savings alone might be enough to cover the cost of a Costco membership. Likewise, if I regularly rented cars, Costco's car rental program could tip the scales in favor of buying a membership. But since I'd rarely take advantage of these perks, I'm holding off on a Costco membership.

4. I'm prone to silly impulse buys

Just as I know I'm prone to buying lots of food and never cooking it, I also know that I'm prone to loading up on impulse purchases, like snacks, dog toys, and clothes I don't need. Because I don't need another source of temptation, I'm skipping the Costco membership for now.

5. You can use some Costco services without a membership

If you want to load up on $5 rotisserie chickens or buy 40 rolls of toilet paper at a time, you'll need to shell out for a Costco membership. But several Costco perks don't require a membership. For example:

  • Depending on your state, you may be able to buy alcohol at Costco even if you're not a member.
  • You can get prescriptions filled at Costco pharmacy (though you'll need a membership to take advantage of exclusive discounts through the Costco Membership Prescription Program).
  • You can get eye exams through Costco Optical without a membership, though buying eyeglasses and contact lenses requires a membership. If you get a prescription, you can take it to another eye-care professional.

Sadly, I don't live in a state where you can stock your home bar at Costco without a membership. I also have health insurance that requires me to fill my prescriptions at a pharmacy other than Costco, and I don't wear eyeglasses. But if these are your main reasons for joining Costco, it's worth researching whether you could use these services without a membership.

Is a Costco membership right for you?

Don't get me wrong: A Costco membership can be a great way to save money, depending on your situation. If I were feeding several mouths and lived within a few miles of a warehouse, a membership would be an easy call.

Consider whether your consumption habits are a good fit for buying things in bulk. If you have limited space, you don't have much time to devote to meal prep, or you don't live near a warehouse, you may be better off saving your $60 to avoid buying things you'll never use. With the right grocery credit card, you may be able to earn perks while shopping somewhere that better fits your needs.

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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. 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.Robin Hartill, CFP® 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.