7 Costco Buys That Can Actually Lower Your Monthly Costs in Retirement
If spending money to save money seems like a contradictory concept, you haven’t been to Costco recently. The bulk warehouse retailer offers everyday deals that make regular expenditures more affordable and cut down on the need to shop more frequently.
Here are seven Costco buys that can lower costs for retirees.
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1. Items Without an Expiration Date
The items that can actually lower costs at Costco are both the things retirees buy anyway as well as those that don’t have an expiration date, according to Ceech Hsu, founder of Krazy Deals.
The categories that consistently beat both Amazon and the grocery store are paper goods, alcohol, household supplies and other nonperishables.
“These all share one thing: They don't spoil before you can use them. That's the real test for retirees, not the per-unit price,” Hsu said.
2. Long-Shelf-Life Pantry Staples
For food items, the real savings come on the kinds of items that can be stored for a long time without spoiling, too, because many of Costco’s products come in bulk quantities. Here are some items to consider:
Rice, pasta and oats
Canned tuna and beans
Olive oil, honey and vinegar
Spices and baking staples.
Many of these last months or even years, meaning retirees can fully use what they buy and maximize value.
3. Freezer-Friendly Foods That Replace Eating Out
Frozen foods can significantly reduce costs by reducing the need to make grocery runs — saving on gas and impulse buys, as well as dining out, Hsu said. Of course, this is only if the foods are ones you’ll really eat and not ones that will sit collecting freezer burn for months.
Hsu said frozen meats tend to be a great way to get value on meat that would otherwise go bad before it can be consumed.
4. Household Products That Reduce Replacement Frequency
Another area where Costco can make a significant impact in a retirees’ budget is in household products that have a higher replacement frequency.
This can include:
Batteries
Light bulbs
Food storage systems (containers, vacuum sealers).
5. Health and Wellness Cost Offsets
Healthcare is a major retirement expense, and Costco offers several categories of products to support health and wellness, including:
Over-the-counter medications (allergy medicines and pain relievers)
Vitamins and supplements
Costco pharmacy prescriptions.
6. Services That Reduce Ongoing Expenses
Costco also offers services at reduced prices, such as:
Vision and hearing services
Insurance partnerships
Travel discounts.
7. Gasoline
If you drive at all, Costco gas alone usually justifies the membership, Hsu said.
“Costco typically runs about 10 to 30 cents per gallon cheaper than surrounding stations, depending on the market,” Hsu said.
On a 15-gallon fill, that's roughly $1.50 to $4.50 saved every time you stop.
When Bulk Buys Can Backfire
All of that said, Hsu made clear that for households of two or fewer, big packs of fresh produce and meat packs are usually a bad deal.
“The price per pound looks incredible until half of it goes in the trash. The categories that genuinely lower your monthly costs are the ones with a long shelf life," Hsu said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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