4 Signs You're Not Making the Most of Your Costco Membership

Shopping at Costco on a regular basis can be a huge source of savings -- even when you factor in the cost of an annual membership. But if these signs apply to you, it means you may not be getting as much value out of your membership as you could be.

1. You're not scoring cash back on your purchases

Costco offers two types of membership -- a basic one for $60 and an Executive membership for $120. While the latter is twice the cost of the former, it comes with a major perk -- 2% cash back on all Costco purchases. So if you shop at Costco fairly often, it might pay to upgrade your membership so you can snag cash back on the items you buy.

If you do the math, you'll see that it takes $3,001 in annual spending to come out ahead financially with an Executive membership. With $3,000 in spending, you break even, because 2% of $3,000 is $60 -- the cost of your upgrade.

It pays to look through recent credit card statements to see how much you're spending at Costco on a weekly or monthly basis, depending on how frequently you visit the store. You may find that an Executive membership is more than worth it.

And remember, that 2% cash back applies to online Costco purchases, too. It also applies to vacations you book through Costco's travel service.

2. You're not filling up your car before or after you shop

Costco is said to have some of the cheapest gas prices in town. So it pays to time your visits to the store to when your tank is running low. If you hardly ever get gas at Costco, you could be missing out on a world of savings, especially if your vehicle has a larger tank.

3. You're not buying gift cards to places you frequently visit

Costco gift cards make a great gift -- for others as well as yourself. See, the benefit of buying gift cards at Costco is getting a discount on their face value. So if there's a store or restaurant you visit often, it pays to see if Costco sells gift cards you can buy.

As an example, Costco is selling a four-pack of $25 Domino's gift cards for $79.99. If your family orders from Domino's once a week throughout the year, then that's an easy balance to use up. But instead of paying $100 for $100 worth of Domino's pizza, you'll only pay about $80.

4. You're not willing to try Kirkland products

Some consumers are very loyal to the brands they know and love. But if you're not willing to give Kirkland products a chance at Costco, you're missing out on an opportunity to save. That's because Costco's signature Kirkland products are often less expensive than their name-brand alternatives.

Plus, some Kirkland products are actually made by well-known companies. They're just produced specifically for Costco. So before you write off Kirkland products, check the labels.

Costco memberships offer a lot of value. But it's important to do what you can to make the most of yours. That means snagging cash back on your purchases, buying gas on the cheap, loading up on discounted gift cards, and bringing home your share of Kirkland products.