A Costco or Sam’s Club Membership Can Be a Waste in These 5 Cases
Costco and Sam's Club can help you save a bunch of money each trip, but not every person will reap the benefits of astore membership. Costco memberships start at $65 a year and Sam's Club memberships start at $60 a year.
Yes, being able to take advantage of members-only benefits and discounts does sound appealing, but before you visit your local Costco or Sam's Club, you should make sure the savings outweigh the cost. Here are some common reasons why being a Costco or Sam's Club member could be a waste of money.
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1. You're a Small Household
One of the selling points of getting a membership to these types of stores is the ability to buy in bulk. Simply put, buying in bulk allows you to save more per unit while reducing how often you need to go to the grocery store.
However, those living alone or with one or two other people might find buying in bulk does more harm than good. For smaller households, buying in bulk could lead to unnecessary waste, especially for perishable items or other qualifying purchases with an expiration date.
2. You Reside in a Small Space
You might want to rethink getting a warehouse store membership if you live in a small place. Bulk items take up a lot of room, so if you're living in an apartment and your kitchen space is limited, you'll be better off picking up what you need for dinner two or three times a week instead of buying in bulk and not being able to store what you bought.
3. You Don't Live Nearby
Access is very important, and if Costco or Sam's Club is somewhat of a commute, you may not benefit from a membership. For example, if the nearest warehouse club is far away, the extra travel time and costs could be greater than the savings.
If a grocery store is closer, that's probably a better choice. A membership can be great when it's easy to shop, but if you have to travel an hour or two, you might discover that you opt for the local options instead of making a special trip just for the warehouse store.
4. You Desire Specialty Products
Costco and Sam's Club carry name brand products, but the best deals are most likely going to be found on their in-store brands. These are not the places to look for smaller, boutique brands or a variety of big-name brands. If you're looking for specific items and are not interested in the generic versions, consider sticking to your local grocery stores or even delivery services to cover your shopping needs.
5. You Don't Cook
If you have a family to cook for or host gatherings frequently, you'll be able to take advantage of buying in bulk. However, if you don't make a lot of food at home, you probably won't get much use out of a warehouse club membership. It comes down to how likely you are to use the items you buy -- and whether you'll wind up wasting money on ingredients you won't actually use.
For those who like to have food ready to eat as opposed to cooking for themselves, consider ordering takeout or getting pre-made meals from the grocery store instead.
Brooke Barley contributed to the reporting for this article.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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