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I recently canceled my Costco membership because my family only used it occasionally, and we found deals at other stores that are a little more convenient to where we live.
If you're considering whether you should renew your Costco membership, here are five reasons why it might be the right time to cancel.
1. You don't buy gas at Costco
Costco members know that one of the best perks of a Costco membership is the company's discounted gas, which can be up to $0.30 cheaper than the average gallon. That means the average driver, who uses 489 gallons of gas annually, can save an estimated $146.
But you might not need your Costco membership if you're not tapping into that gas savings. I live in a fairly walkable downtown and work from home, so I don't have to gas up my car very often. This means I don't get the full benefit of having a Costco membership, and you might not need it either if you don't visit Costco fuel stations often.
2. You don't use your bulk food purchases
One of the main reasons people get a Costco membership is that they can get really good deals on bulk food purchases. But not everyone needs to buy food in bulk, and it can sometimes be more expensive if you end up throwing some of the food away.
According to Feeding America, Americans waste about 38% of their food every year, either going unsold or uneaten. If you have too much food left over after dinner or don't use up all the food you've bought before it goes bad, it might be time to cancel your Costco membership.
3. You're going over your budget
While most people save money at Costco, busting your budget with your membership is possible. For example, if you find yourself frequently taking advantage of Costco sale items -- like a new phone, furniture, or jewelry -- it may be time to cancel your membership.
I was recently shopping in a store for a new computer and saw great deals on new TVs. Did I need a new TV? No, but I almost bought one because the sale seemed so good. With Costco frequently offering good deals, it can be easy to talk yourself into a purchase that's not great for your budget .
4. You live too far away from a Costco store
My nearest Costco store is only about 15 minutes from my home, so it's technically not far away. However, it's on a very busy road that often gets gridlocked on weekends, which can easily double the travel time.
In contrast, I have two local grocery stores five minutes away and one I could technically walk to if I were more ambitious. I'm more inclined to drive to places closer to me, which means the drive to Costco often loses out to the closer grocery stores. If the same is true for you, canceling your membership may be a good idea.
5. You can find better deals elsewhere
I'm constantly searching for good deals, whether I'm buying a computer or grocery shopping. While my family has benefited from Costco membership deals, we tend to save more money by shopping at Aldi and finding BOGO deals at Publix.
If you find yourself shopping at other grocery stores even after you've made a Costco run, it might be worth taking a look at your receipts to see where you save the most money. Our trips to Aldi are by far the least expensive, and the few things we can't get there, we can usually find for a good price without needing to run to Costco.
Everyone's budget and grocery needs are different, so you might find that a Costco membership is easily worth the $65 annual cost or $130 for the Executive Membership. But if you're not using some of the membership perks, are spending too much money, or simply live too far away from a Costco store, it might be time to look elsewhere to save.
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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy .
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