Should You Join Costco in 2024?

It's time to make decisions about the new year. For example, what type of health insurance do you want to sign up for in 2024? Are you planning to stick with your current home and auto insurance company, or is it time to shop around for a better price? Are you paying for any subscription services that you don't care to drag into January? You may also be trying to make minor decisions, like whether buying or renewing a Costco membership is worth the money.

There's no one-size-fits-all answer regarding the wisdom of a Costco membership, but if your answer to most of the following questions is a "yes," there's a strong chance Costco is a good fit.

Does buying in bulk make sense for my household?

According to SoFi, a recent study across 20 categories of products found that the average shopper can save 25% by buying in bulk. Another study revealed that shoppers who buy in bulk through a wholesale club like Costco can slash up to 35% off their grocery bills.

If your household goes through a week's worth of groceries like ants at a church picnic, saving up to 35% means your Costco membership will pay for itself.

Am I likely to save money if I don't buy in bulk?

If you live alone or have a small household, buying in bulk may be a waste of money. But if you have plans to purchase a large ticket item, like a refrigerator or computer, the annual cost of a Costco membership might be worth it. However, there is a big if.

It's never safe to assume that Costco's price on a big-ticket item beats the competition, even if it's been "discounted" by several hundred dollars. Before making a purchase, do a quick online search for the identical item. You may just find it for less somewhere else.

Are there products at Costco that I can't buy anywhere else?

Some Costco products are worth the cost of membership. For example, Kirkland Signature wine, Costco extra virgin olive oil, and Costco frozen berries are fan favorites. If you have a list of favorite products you can only buy through Costco, factor that into your decision.

Do I live near a Costco warehouse?

If you live an hour or more away from your nearest Costco, you're unlikely to take advantage of perks like low gasoline prices or regular trips to the pharmacy. Ask yourself if you live close enough to a Costco to fully take advantage of savings opportunities.

Does the cost of membership make sense?

Here's how much it costs new members to purchase a personal, annual Costco membership:

• Gold Star membership: $60, which comes to $5 per month
• Executive Gold Star membership: $120, which works out to $10 per month

If you're unfamiliar with what Costco has to offer, scroll through the company website to get a sense of how much you would likely spend (and save) per month. Once you balance that amount against the membership cost, you should know whether a paid membership to a warehouse club makes sense for you.

Costco fans really love Costco, but that doesn't mean joining is right for everyone. Ultimately, only you can determine if shopping at Costco will leave you with extra money to tuck into a savings account each month.