10 Signs a Costco Membership Won't Actually Save You Money

A Costco membership seems to be an excellent way to lower your grocery costs. After all, how can a $5 rotisserie chicken go wrong? Yet, that $65 Costco annual membership fee cuts into any of the savings you could have.

If you use your Costco membership perks, plan and use everything you buy, and spend time comparing prices, then there's a benefit in shopping at Costco. But for some, it just may not be worth it.

If any of the following signs apply to you, it's time to second-guess renewing.

With rising gas prices, Costco can save you money—its fuel is often 20 cents cheaper than the national average. Gas is a loss leader, designed to draw you in to spend more.

If there's no Costco station near you, you're missing out on a major membership perk.

If you end up throwing out a lot of the food you purchase because it simply goes bad before your family can consume it, that's a costly loss. If you're single or just a couple living alone, buying those huge packages of fresh fruit or specialty treats simply doesn't make sense.

If you eat out frequently and don't cook much at home, Costco membership costs may not be worth it in your situation. The reason is simple—most of the products are meant to prepare meals.

There are a range of ready-to-eat meals available, and you could purchase them and go on a weekend cooking spree to stock up your freezer. If you can't give up meals on the go, though, a membership may not be right for you.

One of the best perks of a Costco membership is a cash-back reward. You'll pay a bit more for a membership, but if you use it enough, the company actually gives you some money back.

The Costco Executive Membership allows you to earn 2% in rewards, or up to $1,250 on qualified purchases each year. Just remember, if you don't spend enough there, you're not saving enough money to make the upgraded membership fee worth it.

It's fun to spend a weekend day traveling across the region and going to a Costco to explore. The problem is, to make membership worthwhile, you need to live close enough that the retailer becomes your go-to grocery store.

Consider the time and gas cost of driving to Costco just to take advantage of the savings opportunities. If you're not using it frequently enough, it may not be worth a weekend trip every few months.

One way that a Costco membership could drive up your spending is when you fall for their in-store marketing and "must-have" deals.

If you're walking by an aisle with a high-end pasta maker that you know you may not use and purchase it because it's a great price, you'll end up driving up your costs even further.

For those who have local grocery stores that routinely run fantastic loss leaders and offer savings perks, shopping there could lower your grocery bill and save you a Costco membership cost.

If you haven't checked out some of the lower-priced retailers and grocery stores closer to home, do that first. The quantities are more manageable and the prices may actually be less per unit than Costco on certain items.

Costco is a warehouse club that works with manufacturers to build great deals with those producers. However, not every brand is in those locations.

When you have to have a specific brand of coffee or you cannot go without a specialty creamer for it, and that product isn't at Costco, your membership may not be saving you money in the end.

Let's be realistic. A Costco warehouse is a huge shopping destination, and you'll spend a lot of time walking, browsing, and waiting to check out—something not everyone can handle physically, emotionally, or time-wise.

Add in the always chaotic parking lot situation, and Costco may turn out to not be the ideal choice for you.

There are definitely deals to be had at Costco on food and other purchases. However, you generally need to buy in bulk to get those deals.

That means you'll need to have enough flexibility in your budget to actually make bigger purchases. The savings may make sense over time, but with a tight budget, those larger buys may not be easy to manage.

There are ways to save money at Costco, and using your membership wisely could help to reduce your costs in some ways. To get the most out of your membership you really need to learn a few of the best shopping hacks to make your membership work for you.

With a plan, a budget, and smart shopping, you can save money and avoid impulse buys.