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I can't imagine what my life would be like without Costco. I know that sounds awfully dramatic, but hear me out.
I shop at Costco pretty much on a weekly basis, and my membership allows me to save hundreds of dollars per year -- maybe more -- on groceries and household essentials alone. Plus, there are certain grocery items I buy at Costco regularly that you just can't find anywhere else.
But just because a Costco membership makes sense for me doesn't mean everyone should have one. Here are some signs that your Costco membership just isn't paying off.
1. You don't use it
Like I said, I shop at Costco almost every week. You don't have to do that to make a membership worthwhile, though. Some people go to Costco once a month and manage to get their money's worth.
But if you rarely go to Costco, then there's probably not much of a point to keeping your membership. It's one thing to visit monthly and do a huge stock-up. But if you're visiting Costco twice a year, you may not be reaping enough savings to make the fee you're paying worth it.
2. You don't use it in person
It's possible to save money on essentials by purchasing them at Costco.com. But you'll get a lot more savings when you buy products at an actual Costco store.
Costco marks up the price of its online items to build in the cost of shipping and handling. You may not have to pay a separate fee to have non-perishables shipped to your door, but you may find yourself paying 10%, 15%, or more than what you'll pay in person.
You also technically don't need to be a Costco member to shop at Costco.com. Non-members incur a 5% surcharge on purchases. But what this means is that for every $100 you spend, you're charged $5 extra. If you spend less than $1,200 a year at Costco.com, then it makes more financial sense to pay the non-member surcharge but avoid paying the membership fee, which starts at $60 per year.
3. You disregard most of its benefits
The perks of being a Costco member extend well beyond savings on food and paper products. Costco members can save big on travel packages, car tires, home installation services, eyewear, and more.
If you're not taking advantage of any of these benefits of joining Costco, then it may be time to rethink your membership unless you happen to shop there frequently. It's possible to make back your membership fee in savings on essentials with regular shopping. But if your shopping trips aren't so frequent and you're overlooking these other benefits, then it's time to rethink your membership status.
4. What you save on food costs, you lose to food waste
I can tell you from firsthand experience that buying groceries at Costco can save you a bundle. But that assumes one big thing: You actually eat all of the food you bring home and don't let a notable portion of it go to waste.
It may be that you're paying a lower price per ounce or unit when shopping at Costco. But if you typically throw out 30% or more of your bulk purchases due to not being able to finish up food before it goes bad, then you're not doing yourself any favors. And if bulk buying doesn't make sense for you or your household, then it may be time to stop paying for Costco membership.
I'd have an utter meltdown if my Costco access were to be taken away. So I recognize that canceling a membership isn't so easy. But if the above signs apply to you, then actually, cutting ties with Costco may not be so hard. And that way, you can avoid throwing away your money on those membership fees.
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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