Most of the time, I’m not tempted to overspend when shopping, even at Costco. But my Achilles heel is finding a genuinely good deal. If I know a sale is legitimate, it’s hard to pass it up.
The vast majority of Costco members save money with their membership. Indeed, some research shows you can save up to $1,000 annually by grocery shopping at the discount warehouse club. But there are times when it’s easy to go over budget at Costco. Here are just a few.
1. Treasure hunting
Strolling through the aisles to see what new items are for sale and which are the best deals is part of the fun at Costco. After all, if you go to the store once just per month, you need to make the most of the trip, right? Unfortunately, Costco is betting that you’ll do that and end up spending way more than you were originally planning to.
Costco’s management recently said that many members like to “treasure hunt” when they enter the store. Because of this, Costco’s leadership says that sometimes people who were planning on spending just $100 end up leaving with $300 less in their bank accounts. Talk about busting your budget!
2. Clothing deals
It’s probably no surprise that one category that’s easy for many shoppers to overspend in is clothing. A survey from Empower shows that accessories, clothing, shoes, and jewelry are the most popular non-essential items Americans buy.
My wife is always searching for clothing deals for our kids, especially since they seem to grow out of their shoes every week. And sometimes we buy their clothes before they need them because we find them on sale. But doing this too often can push us over our budget.
Costco is great for finding deals on clothes, but searching for deals can easily lead to splurging. Americans’ monthly spending on clothing and footwear increased 72% from 2020. This means it might be best to hold off on looking at the clothes until you really need them.
3. Electronics
If there’s one spending category that’s the most tempting to me, it’s electronics. I almost made an impulse buy on a TV a few weeks ago because the deal seemed really good. I’m frugal enough that I can usually put off the urge until I really need an item, but sometimes my window shopping tips into just shopping.
The consolation is that I’m not alone. Consumer electronics purchases will reach nearly $150 billion in the U.S. this year, and Costco will likely benefit.
I recently saw Apple’s latest 13-inch MacBook Air listed on Costco’s website for just $899, $150 off its original price. Members know that Costco is a great place to buy electronics for their discounted prices and because their company offers extended manufacturer warranties — including for computers, TVs, and major appliances — by up to two years.
Two ways to avoid busting your Costco budget
We’re all guilty of overextending our budgets, even when shopping at Costco. Here are a few ways to make it less likely that you’ll overspend.
1. Pay in cash
Paying in cash is one of the most tried-and-true strategies for staying within your budget. The simple reason why this works is because you can’t spend more than you have in your wallet. Leave the Costco credit card at home to ensure you stick to this strategy.
2. Stick to your list
I need to have a list whenever I go shopping, mostly because I’ll never remember what I’m supposed to buy if I don’t! But the added benefit of a list is that you can use it as a physical reminder to avoid all the tempting Costco deals around you. If it’s not on the list, leave it where it lies!
If you’re worried about going over budget, pull out your last Costco receipt and count how many items you bought that weren’t on your shopping list. Then, the next time you head out to Costco, bring only cash with you and avoid the aisles with nothing on your list. Unless there’s a really good deal on TVs, of course.
