Costco is Boss

Costco is the best way to save money on grocery items! Here’s why…

First off, unlike Sam’s, Costco isn’t owned by WalMart and thus actually has high quality stuff. (Yes that is a slight to WalMart, I hate them). Even Costco store brand stuff (coined Kirkland) is really great. For example- Kirkland paper towels are way thicker and more absorbent than any other store brand I’ve ever tried. Their Kirkland Organic Natural Peanut Butter is the best natural PB ever. Unlike most natural versions it doesn’t completely separate and make an icky mess. Kirkland frozen ravioli- extra plump and cheesy, Kirkland fresh muffins- HUGE and the best ever ($6.49 for a dozen), Kirkland Take n Bake pizzas- more toppings than any DiGiorno…

Second, Costco has everything from the freshest cuts of meat (we have family friends that own a little Italian restaurant and they get all their meats from Costco), great fresh produce, bakery items, packaged items, frozen foods, beer, wine, vitamins, beauty store procudts, and even things like office supplies, books, motor oil, and large and small appliances, movies, clothes (seriously: 7 For All Mankind jeans for men and women for $78, Ed Hardy t-shirts for $28, lounge wear, socks, undies, outerwear, seasonal swimsuits, etc)

Now, you do have to do your homework. It’s always a good idea to know about how much you pay at the grocery store for different items. This way you always know you’re getting a good deal.

But here’s the real kicker on the savings…
A regular Costco membership is $50. You can upgrade to Executive Membership and pay $100 instead. If you do this you get 2% cash back on all Costco purchases (excluding Liquor Store sales and Gasoline sales). Let’s say you get the Exec membership and you don’t end up shopping there quite as much as you’d expected so your 2% cash back check at the end of the year is only $30. You take the check to your Costco with your Exec membership and they’ll give you $50 instead. You are guaranteed to get the $50 extra you paid to upgrade to Exec!

But wait!! There’s more!! (*channels inner infomercial host*)

Costco offers an American Express card. There’s no annual fee with your paid Costco membership and the card also pays you cash back. You get:
- 3% back on Gasoline (just buy at any standalone gas station- so no grocery stores, except Costco)
- 2% back at restaurants, get paid to eat out!
- 2% back on travel (including hotels, car rentals, flights, travel agent services, etc)
- 1% back on everything else
You can combine this with your Exec membership and double dip. So when you go to Costco and use your Amex to pay you get 2% back for your Exec membership and 1% back on the credit card. Plus, the Amex has your picture and membership info on the back, so there’s only one card to keep track of.

When you signup you can add a household member at no extra charge to your Exec membership and add them as a secondary Amex card holder so you both work towards your cash back.

With interest bearing savings accounts at 1.5% or less, it’s nice to be able to get a little money back on what you’re spending. Especially when most credit cards are only offering 1% or have lots of crazy rules for eligibility.

Your first 3 months on the card are interest free and you do have the flexibility to pay over time, unlike a lot of other Amex offerings. Because of the current economy they aren’t giving large credit lines, but after 3 months you can request an increase. Account management is easy to do online too.

If you’re using the membership and Amex for things you were going to buy anyways and avoid going over what you have cash for then you’re making money. That’s the trick with any credit card… if you want a $1500 television but don’t have $1500 in the bank, you should wait until you have the money. This day and age credit cards should not be used to extend your wealth, they should be used to work the system and make money off the things you need anyways.

Any other cash back deals out there that you’d like to share?