Unlock the Secret to Maximizing Your Costco Savings
When it comes to shopping at Costco, you have a crucial decision to make: stick with the basic Gold Star membership or upgrade to the Executive membership. The latter may come with a heftier price tag of $130 per year, but it offers a lucrative 2% cash back on your purchases. This could translate to a whopping $845 in cash back annually, simply by switching how you pay.
The Catch: Is the Executive Membership Worth It?
To break even on the extra $65 cost, you’d need to spend at least $3,250 per year at Costco. However, here’s a little-known fact: if you don’t reach that threshold, Costco will allow you to downgrade your membership and refund the difference. This means you’ll get your $65 back, no matter what.
The Surprising Popularity of Executive Memberships
Despite the higher cost, the Executive membership is actually Costco’s most popular option, with 52 million members – over half of their total membership base. Even occasional shoppers can benefit from the upgrade, as a single large purchase could put them over the $3,250 mark.
Recent Changes to the Executive Membership
As of September 1, the cost of an Executive membership increased to $130, but the maximum cash back reward also jumped to $1,250. While this change may not affect the average shopper, it could be a game-changer for those making large purchases, such as furnishing a new home.
The Bottom Line: Is the Executive Membership Right for You?
With no risk involved, it’s worth giving the Executive membership a try, even if you’re unsure about reaching the break-even point. By shopping as you normally would, you can earn cash back and potentially pocket a significant amount at the end of the year. So, why not take the leap and see how much you can benefit from Costco’s Executive membership?
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