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Costco members recently got a rude awakening. On Sept. 1, the warehouse club giant raised the cost of its membership fees. Now, a Gold Star Costco membership costs $65 per year instead of $60, while an Executive membership costs $130 instead of $120.
While higher fees aren't exactly something to celebrate, they also aren't a good reason to cancel your Costco membership. These hikes may be annoying, but they're relatively small increases on a monthly basis. And if you were getting great value out of your Costco membership before the fee hike, then chances are, your membership will continue to be worth the money going forward.
Even though a fee hike alone shouldn't push you to cancel your membership, these factors should have you thinking twice about whether you should continue to pay for Costco access.
1. You've moved and Costco is no longer easy to visit
The more you shop at Costco, the more likely you are to recoup your membership fee and then some. So if you've moved to an area where there's no longer a Costco nearby, that's a good reason to consider saying goodbye to your membership. You can either stick to regular supermarkets or join a different warehouse club store that's closer.
You can tell yourself you'll still make the 45-minute trek each way on a biweekly or monthly basis. But when the time comes to hop in the car, you might suddenly realize that you have better things to do with your weekend than drive a whopping 90 minutes for groceries and toilet paper, even if there's potential savings involved.
2. You've downsized and don't have a lot of space
Buying household supplies in bulk can be cost-effective and convenient. If you stock up on things like paper towels and cleaning supplies, you won't have to replenish them as often. But if you've downsized into a much smaller home that doesn't offer a lot of storage space, you may find those bulk purchases hugely inconvenient.
Sure, you might still pay less for tissues on a per-box basis if you get them at Costco. But if your new home has a tiny hallway closet, you might get stuck piling 12 tissue boxes in the corner of your living room for your dog to knock into and for your guests to see when they visit. That doesn't make logistical sense.
3. You constantly make impulse purchases at Costco that add to your credit card debt
The nice thing about Costco is that you can buy a host of products under one roof, from food to kitchen tools to apparel. That's also the bad thing about Costco, though.
Since the store has such a wide range of inventory at appealing prices, it's easy enough to fall victim to impulse buys. And if you constantly give in to unplanned purchases at Costco, to the point where you keep adding to existing credit card debt, then it may be time to take away your Costco access.
The savings you enjoy on essential purchases at Costco could be completely negated by the extra spending you do there. So if you really can't stop making those impulse buys, then it may be time to stop going to Costco altogether.
You shouldn't let the fact that your Costco membership costs $5 or $10 more per year stop you from benefiting from the store's many perks. But if the above situations apply to you, then canceling your membership this month makes plenty of sense.
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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. Maurie Backman 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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