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Upgrading from a basic membership at Costco to an Executive membership is a move that's paid off big time for me through the years. With the Executive membership, you get 2% cash back on your Costco purchases. For a frequent Costco shopper like me, that's a deal that's worth paying more for.
But while I like having an Executive membership, the program isn't perfect. Here are a few not-so-great things about Costco's Executive membership.
1. The price is going up
You may not have heard, but after more than seven years, Costco is gearing up to raise the cost of its memberships. Beginning Sept. 1, 2024, the annual fee for a basic membership will be $65 instead of $60, and the Executive membership will be $130 instead of $120. This means you'll need to spend more money at Costco during the year to recoup the cost of your upgrade.
Right now, it takes $3,000 in annual Costco spending to make back the $60 it costs to upgrade from a basic membership to an Executive one. Once the new price point kicks in, it'll take $3,250 in annual spending to make back the $65 difference. If you've been barely earning enough cash back to cover your upgrade fee for an Executive membership at the current price point, you might really struggle once the cost goes up.
2. You may be tempted to overspend
When I first got an Executive membership, I was worried I wouldn't spend enough at Costco to make back the upgrade cost. And I'd make a point to add to my shopping list to ensure that my upgrade fee wasn't going to waste.
Thankfully, I quickly realized that this strategy wasn't serving me well financially. It didn't make sense to purposely buy extra things and rack up a larger credit card bill just to make sure I wasn't throwing my money away on the higher-cost membership.
But if you decide to upgrade, it may take you a while to reach that same conclusion. And in the meantime, you may end up spending money you shouldn't on purchases that don't really add value to your life.
3. You can't get early Costco access like you could in the past
When I first upgraded to an Executive membership, one of the perks that motivated me to do so was getting to shop at Costco earlier. It's not that I was so eager to get in the door at 9:30 in the morning instead of 10:00. It's that early access meant fewer people and shorter lines for those of us like me who could get in and out quickly before Costco opened to its full membership base.
Sadly, Costco did away with that benefit years ago. And I have to tell you, I really miss it. My one gripe about shopping at Costco is that even when I go at seemingly off-peak times, I still inevitably find myself in the company of more people than I'd like.
Getting an Executive membership for Costco might still make plenty of sense for you, despite these drawbacks. But it's important to know about them so you can make the right decision.
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. Maurie Backman 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 .
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