5 Times a Costco Membership Just Doesn't Pay

When you join Costco, you're not exactly making a huge financial commitment. After all, a basic membership only costs $60 a year. And even if you decide to upgrade to an Executive membership for $120 to score 2% cash back on your Costco purchases, it's still not a ton of money in the grand scheme of things. Plus, the savings you reap by shopping at Costco might more than make up for your membership fee.

But while joining Costco may be a natural move for some people, that doesn't mean it's the right choice for you. Here are a few scenarios where a membership may not value out.

1. You don't cook or eat at home often

Shopping at Costco could result in a lot of savings on groceries -- both perishable and non-perishable items. But if you don't tend to cook or eat at home very often, then you may be used to a mostly empty fridge. And if you join Costco, you may be tempted to load up on groceries you don't end up using.

2. You don't live near a Costco

Shopping at Costco is convenient if you have a warehouse club location nearby. If you don't, then part of your savings might be negated by the money you have to spend on gas to drive to the store.

And then there's your time to consider, too. It may not be worth spending an hour on the road to shave $20 off of your grocery bill when you have work and other things to do.

3. You don't have room for bulk items at home

You can't buy a single box of tissues at Costco -- it just isn't an option. Rather, the groceries and household items you'll find at Costco are available in bulk sizes. If you don't have space at home to store larger quantities of food and supplies, then there's no sense in joining Costco.

You don't want to risk a scenario where you're forced to stash a 12-pack of extra-large paper towels under your desk because there's no place else to put them.

4. You already have a Sam's Club membership

Buying groceries and household supplies in bulk could save you a lot of money. But if you already have a Sam's Club membership, then joining Costco on top of that may not do much for you.

Sure, Costco and Sam's Club don't have the exact same inventory. But a lot of the items you'll find at both chains overlap to some degree. And if you're used to buying bulk toilet paper and cleaning supplies at Sam's Club, then there's probably no need to also buy those items from Costco.

5. You're extremely picky about the brands you use

Costco carries a variety of brands. But if you're really particular about the brands you buy and you refuse to stray from them, then a Costco membership may not be your best choice. You may be better off sticking to your local supermarket if you know it carries the brands you love.

Plus, a good way to save money at Costco is to load up on Kirkland products. If you're not willing to give those a try, then you may not get as much out of your membership.

A Costco membership makes sense for a lot of people. But it may not make sense for you. And if any of these factors apply to you, you may not want to spend your money, even if a $60 membership fee is all it takes to get you in the door.