3 Signs a Costco Membership Isn't Worth It for You

For me, having a Costco membership is truly an obvious win. For the $120 a year I pay for an Executive membership, I typically save at least $10 to $20 per week on the things I buy regularly.

And you don't even need to make a $120 yearly investment in Costco. A basic (or Gold Star) membership only costs $60. And while you won't get 2% cash back on your Costco purchases with a basic membership like you will with an Executive membership, you may get some cash back from your credit card that makes up for it.

But while I can say with certainty that having a Costco membership makes sense for me right now, that wasn't always the case. And if these signs apply to you, you may want to save your money rather than give Costco $60 or $120 per year.

1. You never cook or eat at home

When I was single and lived in New York City, there was a point when I did very little food prep or eating at home. At the time, I had a demanding job that kept me at the office for long hours, so it was often easiest to grab lunch as a means of getting fresh air during the day and to pick up dinner on my way home. Since I was living alone, cooking also wasn't so much more cost-effective than grabbing cheap prepared food, like a slice of pizza or two.

These days, because I do a lot more cooking and have a family of five to feed, a Costco membership definitely pays off for the savings on groceries alone. But if you truly never cook or eat at home, and you therefore spend little on groceries to begin with, then you're going to be missing out on one of the biggest benefits of joining Costco. And in that case, a membership may not be a good use of your money.

2. You have zero storage space

My days of being a New York City resident had me living in a studio apartment the size of my current bedroom. Actually, I take that back -- it may have been smaller.

When I first met my now-husband and he started spending more time in my studio, he wondered why he kept seeing the same pile of clothing in the corner of my couch week after week. I had to explain to him that storing those items on my couch was my only option in the absence of ample closet space.

If your living quarters are similar to the ones I'm describing, then you probably won't really enjoy a Costco membership all that much. You'll probably find that you either have to say no to a lot of purchases due to a lack of space, or that you'll have no choice but to keep cases of toilet paper and tissues out in your living room in the absence of being able to put them away. And while that could make for a nice conversation starter, it's still probably not ideal.

3. There's no Costco nearby

Costco.com offers plenty of bargains in its own right. But if you want to reap the most savings with a Costco membership, you'll need to shop in stores. The prices there are almost always cheaper than the prices you'll see online for packaged food, household supplies, and more.

As such, if you don't have a Costco in a reasonable driving distance, you may want to say no to a membership since you may be limited in the amount of savings you can reap online. And while you can order fresh groceries for same-day delivery, you'll face a serious upcharge for that convenience.

Clearly, Costco memberships offer a lot of value. If they didn't, then there wouldn't be 73 million people paying for one right now. But if these signs apply to you, then you may want to save your $60 or $120 a year and use that money elsewhere.