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For some shoppers, a warehouse club membership can be a worthwhile investment. Getting discounts on groceries, household goods, clothes, and other supplies can be a win for their checking accounts . After all, life is expensive, and it seems to get more expensive every day.
But investing in a membership is only a good money move for some shoppers. There are some situations where you should avoid spending money at retailers like Costco. Here are a few signs it may be time to steer clear of your local Costco club.
1. You make too many impulse buys
Costco offers many great products. In addition to its standard lineup of goods, the retailer is known for selling various seasonal items and regularly introduces new products. With so many great finds, it can be tempting to make impulse purchases.
If you have a limited budget and realize you've been spending more than you can afford, it's a good idea to stop shopping at Costco. The last thing you want to do is rack up expensive credit card debt because you continue to spend impulsively. You may need to take a break from Costco to get your spending habits back on track.
2. The items you purchase are going to waste
Many of the items sold at Costco are packaged in bulk. Because of this, it's imperative to consider whether you'll use up what you buy. If you live alone or are part of a two-person household, you may not benefit from purchasing certain items, like food and drinks, in bulk.
When you shop at places like Costco, you should pay attention to expiration dates and consider your household's usage habits. Some food essentials, like fresh produce, can spoil in days. The last thing you want to do is waste money and food.
If this keeps happening, it may be time to stop shopping at Costco. At the very least, you may want to rethink your shopping strategy and develop new habits. The best approach is to buy essentials that won't spoil or expire quickly. You can save money purchasing items like garbage bags, food storage bags, and paper products.
3. You're making more returns
Not every item sold at your local club is a win. One thing many members love about shopping at Costco is the retailer's generous return policy. Most items can be returned anytime for a full refund if you're unsatisfied with your purchase.
This policy can give you confidence when trying new-to-you products. But if you're regularly making returns, you should take a break from shopping at Costco. Perhaps the items you're purchasing no longer meet your quality expectations.
While you may get your money back when making returns, you're wasting time. The initial time spent shopping and making returns adds up, and your time is valuable. It's best to ensure you'll use a purchase before adding it to your cart.
Do this if you shop at Costco...
If you're still getting good value from your Costco membership, that's great news. But don't miss out on the opportunity to earn rewards. Our No. 1 strategy to save money at Costco is using a credit card that earns rewards when checking out at your local club or Costco.com.
Earning cash back when you shop is a great strategy to maximize your savings. Every dollar you save or earn from rewards is a win for your wallet. Want to earn rewards when swiping your credit card at checkout? Check out our list of the best credit cards for Costco to learn more.
Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America's favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.
Add on the competitive 0% interest period and it's no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!
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. Natasha Gabrielle 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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