How Smart Retirees Save Money at Costco
Financial planning during retirement is important. You don’t get a regular paycheck anymore, which means saving money on everyday things like gas and groceries can make a big difference — and shopping at Costco can help.
The retailer offers discounts and deals on a variety of products and services that you may already be purchasing. Although there is a membership fee, if you shop wisely, you may be able to make that money back quickly.
Using Costco as more than just a grocery store
While you can buy everyday groceries at Costco, it can provide much more than just food for financially savvy retirees. Taking advantage of all the different discounts at Costco can increase your savings, help you maintain your home equity and allow you to reach your long-term financial goals.
Here are four ways you can benefit from your Costco membership.
1. Food and fat
Costco offers shelf-stable foods such as spices, canned goods, pasta, rice oats and more. The grocer has affordable meat options – and buying their frozen meat means you’ll get great value without worrying about the food going bad. In general, Costco is a great place to buy in bulk as it tends to offer lower prices than regular grocery stores for certain items considering how much you’re getting.
Remember that when it comes to saving money at Costco, those savings only pay off if you eat the bulk of the items before they go bad. If you buy a lot of goods and can’t use them all before their expiration date, you might consider shopping at Costco in bulk with a friend, family member or neighbor. Separating costs and supplies makes it easier to eat food before it expires.
You can also save money (and time) with a Costco membership by combining grocery trips with gas station stops. The retailer often has lower gas prices than a regular gas station in an effort to increase store foot traffic.
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2. Gift cards
You can find quick savings on your next Costco trip by checking out their discounted gift cards. For example, at the time of writing, a Costco member can purchase two Uber Eats gift cards for just $79.99, or a $50 gift card to the Regal Cinemas theater chain for $39.99. If you shop at a particular business regularly, or want to give a gift card as a gift, you may be able to find what you’re looking for on the Costco website.
However, you don’t want to end up overspending because of this program. Only buy a gift card with a discount when you eat at a restaurant or use a product.
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3. Quarterly inventory
Buying in bulk isn’t just a way to save money on food. You can pick up a lot of paper supplies, batteries, light bulbs, cleaning supplies and other items that you may need to replenish regularly.
While Costco can get away with large inventory because of its large warehouses, you may not have the same flexibility — especially if you’re downsizing during retirement. Each quarter, make a list of these items and decide what makes sense to stock up on your next Costco run based on what you need and where you can save.
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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 big purchases like your home and car, you may be paying more than you need to.
Costco offers both auto and home insurance discounts through our partners, as well as a pet insurance deal. Compare rates with what you’re currently paying to see if switching to another provider can help you save.
