Most people will agree that a Costco membership is worth the $55 a year. That amount can be saved in one trip with some of the non-grocery items I’ve found like KitchenAid mixers or Ralph Lauren dress shirts, both at half the price found in other stores.
What i wasn’t sure of was whether the executive membership would be worth the extra $45. The executive membership gives you 2% back on most of your purchases. So at the minimum, you’d want to at least make back the additional $45 cost, even better if you can get $100 back to pay the entire cost of your Costco membership.
To get a $45 reward, you will need to spend at least $2,250 a year, or $187.50 a month. This amount is likely if you’re regularly shopping at Costco.
Now, if you’re hoping to pay for the entire $100 membership with your annual reward you would need to spend $5,000 a year, or $416.67 a month. This amount might be more than many will spend at Costco, but it’s definitely possible to spend that much if you are doing the majority if your grocery shopping there.
So as long as you’re spending about $200 a month, the executive membership looks to be worthwhile. On top of that, there are also some extras available to executive members, at a cost, including roadside assistance and telephone service.
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I transferred from regular to executive membership 2 years ago and I usually get back 100 (which is all) or 100+ every year.
mewithoutdebt,
Yeah, it’s pretty easy to go there once a week and spend over $100… I go in for a few groceries and walk out with a lot more non-grocery items than I planned!
I am not sure you are aware but the Membership Services rep told me that if I didn’t earn the $45 extra paid back, that I would be refunded the $45 back.