January 15, 2010

Is it Worth it to Get a Costco Executive Membership?

This weekend we were at Costco to pick up a couple things and at the checkout the cashier tried to sell us on their Executive Membership.   With the Executive Membership you pay an extra $50 above the normal membership but you get 2% cash back on your purchases at the end of the year.    Deciding if the Executive Membership is worth it or not is pretty straight forward.   All you have to do is find out the breakpoint where the 2% back will be worth more than the $50 cost.

Costco Executive Membership is worth it if you spend more than $2500 a year at Costco.

There are a couple other considerations to keep in mind.   You should have a decent amount of certainty that you'll spend at least $2500 before you sign up for Executive membership.   I wouldn't spend the extra $50 on a vague chance you might hit the $2500 mark.     And if you're brand new to Costco then I wouldn't jump straight to the Executive membership without getting a good idea of how much you actually spend there.  Also note the cashback is in the form of a Costco store credit.  Presumably store credit that is usable to you since you're already spending thousands at Costco, but its worth noting that the rebate is not hard cash.

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