This Is the Absolute Best Reason to Join Costco

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The typical Costco member is probably someone whose lifestyle is similar to mine. They may live in suburbia, spend their afternoons driving kids around town to after-school activities, and spend an almost painfully large chunk of their paycheck on groceries.

Of course, not every Costco member fits this profile. It's easy enough to make the case that seniors can benefit from a Costco membership, even if they're empty-nesters. And while Costco's bulk offerings might pose a challenge for city dwellers with limited storage space at home, it's not a given that every member will reside in a suburban or rural area. I've had friends get good use out of a Costco membership while living in a 400-square-foot studio.

But remember, while Costco offers plenty of opportunities to save money, it differs from other stores in that you need to pay for a membership to gain access. Right now, a basic (Gold Star) membership will cost you $60, while an Executive membership will cost $120 (you'll get 2% cash back on your purchases as a perk, though). Beginning Sept. 1, these fees are rising to $65 and $130, respectively.

You may be inclined to join Costco for a variety of reasons. But to me, this is the single best reason to buy a membership.

When you expect to shop there consistently for everyday items

Technically, you can get great value out of a Costco membership even if you only use it a single time during the year. Let's say you're pricing out a laptop that Costco has available for $80 less than any of its competitors. Even if that's the only purchase you make at Costco all year, guess what? You just made back your $60 membership fee and saved yourself $20 on top of that.

But while it's possible to get enough value out of a Costco membership to justify the cost by only shopping there on occasion, if you ask me, the best reason to join Costco is if you expect to shop there consistently for everyday items.

The danger in joining Costco with the expectation that you'll make your money back with one large purchase is that you might push yourself to make such a purchase so your membership doesn't go to waste. But that could end up hurting you financially.

For example, say you have a membership but realize you've gone almost a year without buying anything from Costco. You might say, "Hmm, let me see what's on sale this month so I can get a deal and put my membership to use." But if you then end up buying something you don't actually need, you're not helping yourself financially in any way.

On the other hand, you're going to need groceries, toilet paper, and cleaning supplies during the year. There's no question about that. So if your situation is such that buying these items in bulk makes sense, then a Costco membership makes sense. If not, then you may want to save your money and instead spend the time seeking out deals at other retailers that don't charge a membership fee.

How to make the right decision

If you're on the fence about joining Costco, I get it. I've known a lot of people who struggled with that decision, too, because these days, every dollar counts. And you don't want to pay for a membership you don't actually need.

If you're not sure whether to join, ask yourself:

• How far away is the nearest warehouse club store? If it's a comparable distance to your closest supermarket or big-box retailer, then convenience/location shouldn't be an issue.
• How much storage space do I have at home? If you've got room in your garage for paper goods, a large closet for cleaning supplies, and a spare fridge in your basement for bulk perishables, then you probably have the right setup for a membership.
• Do bulk food purchases make sense for me? If you live alone, they may not. If you have a spouse and two kids, bulk food items may be less likely to go to waste.

Remember, too, that you're never stuck with a Costco membership . If you buy one and find that you aren't using it, you can cancel and get a refund at any time. So you really aren't taking a huge financial risk either way.

But it still pays to put some thought into the decision so you don't end up wasting your money -- because while Costco will give you a refund for canceling your membership, that hinges on you remembering to ask for one in time.

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