How Smart Retirees Are Turning Costco Trips Into Monthly Money-Savers
Financial planning in retirement is essential. You no longer receive a regular paycheck, which means saving money on everyday items like gas and groceries can make a huge difference — and shopping at Costco can help.
The wholesaler offers discounts and deals on a wide variety of products and services you may already be buying. While there is a membership fee, if you shop smartly, you may be able to recover that fee quickly.
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Using Costco as more than just a grocery store
While you can buy everyday groceries at Costco, it can provide far more than food for financially savvy retirees. Taking advantage of all the different discounts at Costco can maximize your savings, helping to preserve your nest egg and allowing you to reach your long-term financial goals.
Here are four ways in which you can make the most out of your Costco membership.
1. Food and fuel
Costco offers ample shelf-stable staples such as spices, canned goods, pasta, rice oats and more. The wholesaler also has affordable meat options — and buying its frozen meat means you’ll get a large quantify without worrying about the food going bad too quickly. In general, Costco is a great place to buy in bulk as it tends to offer lower prices than traditional grocery stores for certain items when you consider how much of the item you’re getting.
Keep in mind that when it comes to saving money at Costco, those savings only come to fruition if you consume bulk items before they spoil. If you are buying too many goods and can’t consume them all before their expiration date, you can consider doing bulk Costco purchases with a friend, family member or neighbor. Splitting up the costs and goods makes it easier to consume the foods before they expire.
You can also save money (and time) with a Costco membership by combining grocery trips with stops at the gas pump. The retailer tends to have lower gas prices than the typical gas station in a bid to increase in-store foot traffic.
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2. Gift cards
You can get immediate savings out of your next Costco trip by looking at their discounted gift cards. For instance, at the time of writing, a Costco member can buy two $50 Uber Eats gift cards for just $79.99, or a $50 gift card for the movie theater chain Regal Cinemas for $39.99. If you buy from a certain business often, or are looking to give a gift card as a gift, you may be able to find what you’re looking for on Costco’s website.
However, you don’t want to end up overspending because of this perk. Only buy a discounted gift card if you actually eat at the restaurant or use the product.
3. The quarterly inventory
Buying in bulk isn’t only a way to save money on food. You can pick up buy large quantities of paper goods, batteries, light bulbs, cleaning supplies and other items you may need to replenish regularly.
While Costco can get away with a vast inventory thanks to its massive warehouses, you may not have the same flexibility — especially if you’ve downsized in retirement. Each quarter, do an inventory of these items and determine what it makes sense to pick up on your next Costco run based on what you need and what you have room to store.
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4. Insurance check
Insurance premiums can eat into your monthly budget. And while it’s important to have this protection for purchases as large as your home and car, you may be paying more than you need to.
Costco offers both auto and home insurance discounts through partners, as well as a deal on pet insurance. Compare the rates with what you’re currently paying to see if switching to another provider could help you save.