Introduction
Costco is a popular warehouse store that offers a wide variety of products at discounted prices. However, it can be easy to overspend when shopping at Costco, especially if you don’t have a plan. According to an expert, there are certain strategies that shoppers can use to avoid overspending at Costco. In this article, we’ll discuss some of these strategies and how they can help you save money when shopping at Costco.
Costco Shoppers Often Overspend at the Warehouse, Expert Says
Costco shoppers are known for their love of a good deal, but according to one expert, they may be spending more than they should. Financial expert and author of “The Money-Smart Family System,” Steve Repak, recently told Business Insider that Costco shoppers often overspend at the warehouse.
“Costco shoppers are notorious for overspending,” Repak said. “They go in for one or two items and come out with a cart full of stuff they don’t need.”
Repak said that shoppers often get caught up in the excitement of the warehouse and end up buying more than they need. He recommends that shoppers make a list of what they need before they go to the store and stick to it.
“It’s easy to get caught up in the excitement of the warehouse and buy more than you need,” Repak said. “Make a list of what you need and stick to it. Don’t be tempted by the deals and discounts.”
Repak also recommends that shoppers take advantage of the store’s return policy. Costco has a generous return policy that allows shoppers to return items within 90 days for a full refund. This can help shoppers avoid buying items they don’t need.
“Take advantage of the store’s return policy,” Repak said. “If you buy something and realize you don’t need it, you can always return it for a full refund.”
Repak’s advice is a good reminder for shoppers to be mindful of their spending habits. By making a list and taking advantage of the store’s return policy, shoppers can avoid overspending at the warehouse.
It’s easy to feel like a winner when shopping at Costco. We love the idea of frugality as we lug oversized shopping carts filled to the brim with colossal olive jars, jumbo cans of beans, and toilet paper that will surely last for months to come.
“It’s all about the savings,” we tell ourselves as we march through the warehouse aisles, grabbing anything we may use in the near or distant future.
And apparently, we’re wrong. According to Dave Ramsey, a national bestselling author and personal finance expert, it’s easy to overspend when savings make our eyes bigger than our stomachs.
“Watch out for how easy it is to buy things in bulk that you weren’t intending to purchase,” Ramsey told The Ascent. “Even though it might seem like a pretty good deal, if it’s going to derail your budget, it’s not worth it, folks.”
Costco members pay $60 for a regular annual membership or $120 for an executive membership (for the executive membership, you receive 2% back on qualified Costco purchases along with other extra benefits). Many Costco members tend to purchase more items to justify the membership fee, Ramsey says.
His advice? Make a list and stick to it so you don’t get lured into making unnecessary purchases. The average person spends $114 for nine items every time they visit Costco—which is twice a month, according to The Ascent. That totals more than $2,700 each year. Costco’s typical customer earns more than $125,000 annually, so while they may be able to afford the warehouse, it’s always a good idea to heed Ramsey’s advice and avoid waste.
After all, while you may not be overspending on your $1.50 hot dog/soda deal or on your $5 rotisserie chicken, the food you end up tossing in the garbage is money down the drain.
“Filling up your shopping cart to the brim with bulk items can feel thrilling, but remember to ask yourself these questions before you get too carried away: Will this go bad before I can eat it all? Have I budgeted for it?” Ramsey advises.