In theory, shopping at Costco can help you save money throughout the year, especially if you consume a lot of one product. When broken down by the unit, Costco’s prices are hard to beat, which makes buying items in bulk cheaper than buying them in smaller quantities at regular grocery stores.
But having a Costco membership can be a double-edged sword. While it can certainly help you save money every month, it can also lead to impulse buying and overspending. If you’re one of those people who go in for eggs and milk and come out with a television and a kayak, here are some ways to cut back on your Costco spending.
1. Make a list on the Costco app
Shopping at Costco with a list is one way to put guardrails on your spending. In fact, Costco will even let you make a list within its app. You can download the app from the Apple App Store or Google Play, then navigate to the “Account” tab (in my app, it’s the middle button at the bottom). There, you’ll see a “Lists” section. You can create lists using Costco.com items, or you can write your items out without attaching them to an online listing.
Of course, you’ll also need to exert some discipline in sticking to your list, especially if you’re seeing deals in-store. My tip: If it’s not on your list, tell yourself you’ll buy it only after at least 24 hours of ruminating. Usually, after sleeping on it, you shed the impulse and can decide more rationally whether you actually need something.
2. Only shop with cash
One way to only buy what you can budget for is to pay with cash. This works well if you know in advance what you want to buy (see above for making a list) and can bring an exact amount to the cash register. If you can’t remember how much you’ve spent on your necessities, you can use the Costco app to look up past receipts.
Paying with cash does mean forgoing rewards or cash back from credit cards. You might not even consider cash if you have the Costco Anywhere Visa® Card by Citi, which earns 2% cash back on all Costco purchases. If using cash back credit cards is important to you, then vowing to stick to your grocery list will likely be your best defense.
3. Take advantage of price adjustments
Many Costco members forget that they can retroactively save money when certain items go on sale after they’ve purchased them. Not all items are eligible for price adjustments, and you need to request a price adjustment within 30 days of making your purchase. But if you bought something at the full price just before it went on sale, requesting a price adjustment could mean saving on a previous Costco trip, which will be even sweeter if you didn’t overspend on that visit.
There are other simple ways to cut back on your Costco shopping, like forgoing the shopping cart or using Instacart to buy groceries on your phone rather than going to the warehouse. Whichever ways you choose, use these tips to avoid overspending when you’re at your warehouse so you can squeeze more value out of your annual membership.
