First of all, two things you should know about me. One, I love saving money. Two, I am a Costco member. For my family, Costco makes sense. I save money on several things we use every week; applesauce, milk, eggs, sparkling water.
But, you just want to know if the cost of a Costco membership is worth it.
The short answer is Yes.
The basic membership for Costco costs $60 and includes a second household card. There is also a $120 membership that gives you two percent cash back on qualified purchases. For our purposes, we will focus on that $60 membership.
There is one simple way to earn back the cost of that membership, and it will only take you three months. How? Just by filing up with Costco gas. If you didn't know, Costco gas is only available for members.
Take a look at the prices in the Sacramento area on Sept. 26:
- Costco: $3.09/ gallon
- Sacramento Average: $3.54 (per AAA)
That’s a savings of 45-cents per gallon. And here comes the math. Assuming Costco’s gas prices stay that much lower than the average, you would need to buy about 133 gallons of fuel to see $60 in savings.
Now, assuming you fill up once a week, buying 12 gallons of gas at a time, you will reach the break-even point in about 11 weeks. Over the course of a year, you could save more than $200 just by buying Costco gas.
I know, the Sacramento average gas price isn’t necessarily the same as the price in your neighborhood. So, if you know a cheaper place to get gas, don’t live near a Costco, or don’t need to buy in bulk; maybe a Costco membership isn’t right for you. But for the rest of us, there’s no need to worry about paying that membership price.