Costco Executive Membership Review

Saving as much money as possible is a priority for anyone who wishes to retire by the age of 37. If you are interested in retiring early, you may be taking a closer look at a Costco Executive Membership review. It will help you decide if this is a reasonable money-saving option for you. While this discount could save you money on various purchases, you need to determine if it will be cost-effective for you to buy and use.

What Is a Costco Executive Membership?

Before you spend time reading a Costco Executive Membership review, it is necessary to learn more about what this type of membership is and what it offers. Costco is a discount retailer that requires its customers to purchase an annual membership before making purchases. There are multiple membership levels available, and the Executive level is the highest tier offered.

As you might imagine, it offers numerous benefits that could potentially save you a substantial amount of money. However, there is also an annual cost associated with buying the membership. Anyone who is reading a Costco Executive Membership review and who is thinking about joining Costco or upgrading their existing membership should learn more about it.

How It Works

When you read through a Costco Executive Membership review, you understandably want to learn more about how this type of membership works. Essentially, you pay an annual fee up-front for your Executive membership, and you can use your membership to shop at any Costco store. The membership can also be used to access travel deals and to shop online.

The store offers everything from tires and prescription drugs to food products, business services, bottled water service, various types of insurance, and more. This membership offers up to $1,000 cash back to its Executive-level members each year.


Your membership account tracks all of your purchases made with Costco over the course of a year. Those who spend at least $3,000 per year with Costco, which equates to approximately $250 per month, will receive $60 in cash back rewards at the end of the year.

There is a tiered system that offers a higher cash back reward if you spend more money at Costco. The highest level available on this tiered system will pay you $1,000 per year in cash back rewards. The annual purchases must be $50,400 or more to qualify for this benefit. It may seem unreasonable to some individuals to expect to pay this much money to a single retailer.

However, remember that you could potentially get your automotive services, insurance products, vacations, business services, groceries, and more through this retailer. Therefore, some people may actually discover that they could potentially spend this much money with Costco each year.


In order to qualify for the Executive-level membership, you are required to pay an annual fee of $120 per year. Other lesser memberships that do not have the cash back reward option are available for only $60 per month. Therefore, when you read through a Costco Executive Membership review to determine if the upgraded membership is right for you, you need to determine if the cash back benefit is worthwhile.

In order to get to the break even point and get a $120 per year cash reward, you will need to spend approximately $500 per month or $6,000 per year. To enjoy an actual return on this card, you will need to qualify for the next tier in the rewards program. This pays you $192 as an annual reward if you spend at least $800 per month or $9,600 per year.

When you buy this membership, you may feel inclined or obligated to make purchases with Costco. This means that you may not shop around to find the best deal. Even if you do shop around, you may still be inclined to shop at Costco even if this retailer has a higher price. Therefore, limiting your shopping options to a single store is not always a good idea that can result in financial savings.

Bonus read – 5 Pension Plans for Self-Employed People


1. Estimating expenses and how the membership helps

You may be trying to decide if this rewards program is right for you. To make a thoughtful decision about this, you need to learn more about the program by reading through a Costco Executive Membership review or two. In addition, it is necessary for you to estimate your annual expenses with Costco.

Will you buy all of your groceries at Costco each week? If so, you may spend $150 per week or $7,800 per year on regular purchases. Will you buy other items, such as clothes, home goods, tires and more at Costco? Will you arrange your vacation through Costco? You can see that you may easily be able to get up to the higher tiers in the rewards program.

However, you will need to commit to shopping regularly with Costco in order to qualify for the maximum amount of rewards possible. Even then, however, it may not be reasonable to expect to spend $50,400 with this retailer if you only make $75,000 or $90,000 per year. After all, you have other expenses that you also will require funds. You need to allocate a large portion of income toward savings in order to retire by the age of 37.

2. Do not race to meet tiers

You should also be aware that some people who buy one of these memberships may feel more pressure to maximize purchases rather than to limit them. This may stem from a desire to try to qualify for the maximum tier of rewards or to make full use of the membership that you bought. This could actually cause you to spend more money than you otherwise would have. Before you sign up for a membership, be honest with yourself about your shopping habits, impulse buying behavior and more.

3. Consider all options

In addition, take note that the retailer’s rewards program is not the only way to save money through Costco. Costco typically offers great deals on merchandise and goods. You can save money when you choose to shop at Costco, not other retailers that charge higher prices.

These discounted prices are available to you with a $60 standard Costco membership as well. Because these prices are available with both levels of membership. You should determine if your spending habits would generate a net return from an Executive level membership.

Bottom Line

After you read through a Costco Executive Membership review, you’ll be able to determine if this membership is for you. Learn more about the goods available at Costco to better determine how much of your shopping you can do here. Remember that those who want to retire by the age of 37 need to use all the savings options available. They also need to avoid wasting money on memberships that they may not receive full benefits from.

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