Dave Ramsey Said to Ask Yourself 5 Questions Before Making a Purchase at Costco. Is He Right?

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

KEY POINTS

  • Dave Ramsey recommends asking yourself some specific questions before you buy things at Costco.
  • One question is whether the items will spoil before they can be used up.
  • You should also ask whether you have space for the item and have budgeted for it.

Asking these questions could help you avoid overspending.

Costco is a really easy place to overspend. The warehouse club provides discounted prices on bulk items, so many people join with the goal of keeping more money in their bank accounts by spending less on groceries and other necessities. 

But, between delicious-looking Kirkland brand food products, seasonal items, electronics, toys, and more, it's really easy to find yourself reaching for the credit cards to fill up your shopping cart with a whole bunch of unplanned purchases.

If you don't want to spend more money at Costco than you should, finance expert Dave Ramsey has recommended asking yourself five questions before making a purchase. But, is Ramsey right about the things you should ask? 

Here are the questions Ramsey suggests asking

The five questions Ramsey recommends asking yourself are designed to help you avoid getting "too carried away" when you're shopping at Costco. They include the following queries:

Our Picks for the Best High-Yield Savings Accounts of 2024

APY
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of July 12, 2024
Min. to earn
$1
APY
4.50%
Min. to earn
$0.01
APY
5.10%
Min. to earn
$0

  1. Will the item spoil before you can consume it completely?
  2. Do you have enough storage space to keep it -- especially if it is a freezer or pantry item?
  3. How much does the item cost per unit or per ounce?
  4. Is it really necessary to purchase such a large quantity of that particular item?
  5. Is there room in your budget for it?

Ramsey also recommended considering your family size, and factoring in the added costs of the warehouse club membership plus gas to drive to get you there if Costco isn't located close to you. But, these five questions mentioned above are the keys to avoiding unnecessary items that you could end up just tossing in the trash or that could lead you into debt. 

Is Ramsey right?

Ramsey is absolutely right with the questions that he suggests you ask yourself. 

You do not want to buy anything that isn't in your budget. After all, if you can't afford it -- even if it seems like a good deal -- then it won't end up being a bargain when you have to pay interest charges on the items you bought. 

It's also not a good deal to purchase a large quantity of an item that you won't be able to use up before it goes bad or that you won't have room to store. You won't save money if you have to throw a good portion of the purchase away because of spoilage. And you could find yourself facing unnecessary stress -- and perhaps even added costs to buy an additional freezer -- if you don't have the room to keep whatever it was you bought.

As for cost per unit, this question can help you make sure you're actually getting the best deal at Costco versus other places you buy it as sometimes there are better bargains to be found elsewhere.

By asking yourself these five questions recommended by Ramsey, you can be sure every Costco purchase you make actually deserves a place in your cart. You can make the most of your money and ensure your membership values out for you since it will help you save more and spend less -- instead of the reverse happening if you get a little too excited walking the Costco aisles and make purchases that don't make sense for you.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow