Here's How I Just Scored Over $100 in Free Costco Purchases

These days, a lot of people are struggling with lingering inflation. And if you're one of them, free cash might do a world of good for your financial situation. But what if I were to tell you that with the right strategy, you could score free cash to spend at Costco?

Recently, I found myself with $106 in free Costco cash to spend. With the right membership, you could snag a pile of free Costco cash as well.

The upside of an Executive membership

Years back, when I decided to upgrade to an Executive membership at Costco, I wasn't sure if that was the right move, since it meant paying double. But I've since realized that because I shop at Costco regularly, an Executive membership absolutely makes sense.

With an Executive membership, you get 2% cash back on Costco purchases. Most weeks, I do a grocery run at Costco where I spend about $100. Sometimes, that $100 is a combination of food and things like tissue boxes or cleaning supplies.

Occasionally, I'll make extra purchases at Costco, like buying holiday gifts or apparel. But all told, I spend a decent amount of money at Costco every year.

Last year, I spent about $5,300 at Costco, which resulted in a $106 rewards certificate courtesy of my Executive membership. As such, during my last trip to the store, I owed no money at checkout. I got a week's worth of groceries and household supplies without having to swipe my credit card.

Is an Executive membership right for you?

If the idea of getting free Costco cash appeals to you, then you may want to consider an Executive membership. Now, you should know that the cost is $120 a year, whereas a basic membership at Costco only costs $60. But if you typically spend more than $3,000 a year at Costco, then the upgrade makes sense.

If you do the math, you'll see that 2% of $3,000 is $60, which is the exact cost of upgrading. So if you spend even a dollar more, you're ahead of the game.

You may not shop at Costco weekly like I do. But even so, an Executive membership might pay off.

Let's say you tend to go to Costco once a month and spend $100 each time. That's only $1,200 in a year. But if you're planning a big trip and intend to book it through Costco Travel, that counts toward your Executive membership. So a $2,500 vacation package could easily put you over that threshold.

Similarly, let's say you plan to upgrade a TV and laptop at home this year. Those items combined might cost $1,800 or more, getting you to the point where the upgraded membership makes sense.

A risk-free endeavor

If you're still not sure if it's worth it, though, do this: Pay for the upgrade and see how your first year goes.

If you don't end up earning enough cash back to make up your $60 upgrade fee, go to customer service and revert back to a basic membership. From there, a Costco customer service representative will see how much cash back you've earned and will pay you whatever amount is necessary to get you to $60.

So let's say you upgrade and only rack up $52 in cash back. When you go to downgrade your membership, you'll get an $8 refund.

All told, the Executive membership at Costco is really a no-risk proposition. But it could leave you with a nice pile of cash to spend -- even if you do what I did and spend it on boring stuff like toilet paper and milk.