More Than 32 Million People Have a Costco Executive Membership. Here's Why You Should, Too

If you're someone who visits Costco on occasion, then a basic membership might make sense for you. At just $60 a year, it's a cost-effective way to gain access to your local warehouse club store (or any Costco store, for that matter).

But if you can swing the $120 fee you'll have to pay for an Executive membership, it could be worth doing. As of the end of Costco's last fiscal quarter, the company had a whopping 32.3 million paid Executive memberships, according to CFO Richard Galanti. And you may want to join the ranks of those 32.3 million people for the benefits involved.

You might come out ahead financially

Costco's Executive membership comes with a few lesser-known perks, like a free Costco Connection magazine every month. But the main benefit of an Executive membership is earning 2% cash back on all of your Costco purchases (with limited exceptions).

What this basically means is that if you spend $3,000 a year at Costco, your $60 back on that sum covers the cost of your Executive membership upgrade. And every dollar you spend beyond that means you win financially by buying the upgrade.

At first, $3,000 might seem like a lot of spending. But let's say you go to Costco once a month and typically spend $250 on your grocery and paper product haul. Guess what? That's $3,000 right there.

Also, buying a single bigger-ticket item at Costco might get you past the $3,000 threshold easily. Let's say, for example, you normally only spend $200 a month at Costco but decide to buy a TV there on Black Friday. If that TV costs $1,000, you've made money on your Executive membership upgrade.

Similarly, you may decide to book a vacation through Costco Travel. If you're taking your entire family, the cost of that alone could easily be $3,000 or more.

There's really no risk upgrading to an Executive membership

It may be that you decide to pay for an Executive membership and you don't end up spending $3,000 at Costco in the course of the following year. In that case, you're still okay. All you need to do is go to customer service and ask to downgrade your membership.

From there, you'll be able to see how much cash back you racked up. And if the total isn't at least $60, Costco will actually refund you the difference. Really.

So all told, signing up for an Executive membership really isn't risky. The worst that'll happen is that you spend the extra $60 upfront instead of keeping it in your checking account.

Of course, if you're absolutely certain you won't come close to spending $3,000 a year at Costco, then you might as well skip the Executive membership -- especially if you've been a member for years and know exactly what your annual spending tends to amount to. But if there's a part of you that's not sure, then you might as well spring for the upgrade and see what happens.