Is a Costco Membership Worth It if You Don’t Live Near One?

If you like Costco and live near a warehouse, the price of a membership is a bargain. A Gold Star membership only costs $60 per year. An Executive membership costs $120, but you also earn 2% back on Costco purchases (up to a maximum of $1,000 back per 12-month period).

But what if you need to drive 30 minutes or an hour to your nearest Costco? While shopping there won't be as convenient, a Costco membership could still pay off.

You don't need to be a frequent shopper at Costco to get your money's worth

Costco has excellent prices, especially if you buy in bulk. An analysis by CNET found that Costco shoppers would save 33% on a selection of popular products compared to a conventional grocery store. Over a year, they'd save over $1,000. With those kinds of savings, a Costco membership can help with improving your finances.

Even if you aren't able to visit Costco all the time, it's still easy to save more than the price of a membership. After all, the Gold Star membership only comes out to $5 a month. You can save much more than that in one grocery trip. Costco also offers deals on prescriptions at Costco Pharmacy and affordable vacation packages with Costco Travel.

It's not uncommon to have a Costco membership even if you don't live right next to one. Plenty of members do this and make a monthly or biweekly trek to their nearest warehouse. It's not just because of the prices -- members have also mentioned that they do this because Costco has higher-quality food products than their local grocery stores carry.

By the way, if you have a long drive to your nearest Costco, make sure to bring a cooler. That way, you can keep everything fresh during the drive home.

See if there are comparable options nearby first

Before you buy a Costco membership, check out what options you have closer to home. Costco isn't right for everyone, especially if it's a lengthy drive to get there. You'll spend more on gas, put more wear and tear on your car, and have less free time.

Those aren't necessarily deal breakers if you enjoy shopping at Costco and you're saving money overall. But it's always smart to compare your options. You might find that there's another grocery store 10 to 15 minutes away that you like just as much.

Remember that you can take a membership for a test run

One of the many benefits of Costco is its generous return policy. That applies to most of the products it sells, and also to the membership fee. As part of Costco's risk-free satisfaction guarantee, it will cancel and refund your membership fee at any time if you're dissatisfied.

So, if you're not sure whether a Costco membership is worth it because of where you live, you could buy a membership and see how you like it. Worst-case scenario, you decide it's not right for you, cancel it, and Costco will refund your money back to your credit card or bank account. But most members are satisfied customers -- Costco has a 92.6% membership renewal rate in the United States and Canada.

If you don't mind driving to Costco at least once a month, you'll probably have no trouble getting your money's worth. Make sure to stock up so you can save as much as possible during each visit.