Money Management

Doing home improvements? Read on to see how going through Costco could put a lot of cash back in your pocket. [[{“value”:”

In some parts of the country, people lose power on occasion, such as during an intense storm. In my neighborhood, all it takes is a stiff breeze for the power to go out. And when it goes out, it tends to stay out for hours.

As someone who works from home, that’s clearly a problem. Years ago, I made the decision to invest in a standby generator — the kind that’s hooked up to your house and turns on automatically when the power goes out.

Although a standby generator costs a lot more than a portable one, mine can power my entire home, and I don’t have to worry about it running out of gas or someone tripping over an extension cord. And let’s face it — no air conditioning on a 95-degree day in August can become unbearable quickly. A portable generator can’t power an air conditioning system (at least not in my experience), but a standby generator can.

Of course, it took a lot of savings to be able to afford a standby generator — $10,000 worth, to be exact. But it’s the best investment in my home I’ve ever made. And what lessened the blow of shelling out that much money was the free cash back I got from Costco.

A deal worth taking

When I was shopping around for generator installation quotes, I went to a few different sources. Most of the quotes I got came in around $10,500. Costco’s was only a touch more competitive at $10,000. But Costco’s offer also came with a sweet incentive — a 10% Shop Card upon the completion of my project.

If you’re not familiar with a Shop Card, it’s Costco’s version of a gift card. You can use a Shop Card for any Costco item you want, and they never expire.

Seeing as how I was going to be spending the money on a generator regardless, to me, Costco’s deal read like $1,000 in free money. And after shelling out a large chunk of cash to do that project, it was nice to get my groceries and cleaning supplies for free at Costco for a good number of weeks by using my Shop Card.

You can snag free Costco cash, too

There are different ways you can get your hands on free money from Costco. First, you could upgrade from a basic membership to an Executive one. You’ll pay $120 instead of $60 per year, but you’ll be eligible for 2% back on most Costco purchases.

Granted, you probably won’t get $1,000 cash back from an Executive membership because you’d have to spend $50,000 in a year to get a payday that large. But if you spend $5,000 at Costco during the year, which is feasible if you shop there most weeks, you’re eligible for $100 back. Subtract the $60 upgrade fee, and you’re still up $40.

You can also score cash back by using Costco for home installation services like I did. Right now, Costco is offering a free 10% Shop Card on services that include:

Window treatmentsFlooring and carpetSolar panelsHome organization systemsWater softenersHVAC systemsCountertops

Once again, you may not get $1,000 back if your project doesn’t amount to $10,000. But if you’re paying $4,000 for a water softener, that’s $400 in Costco cash coming your way.

Of course, any time you’re looking to do home improvements, it pays to shop around for quotes. But if you find a company whose price is comparable to Costco’s, don’t forget to factor in the free Costco cash. A $5,000 quote from Costco, for example, is really more like $4,500 when you account for the fact that your next $500 in Costco purchases will be free with your Shop Card.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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Love free money? Read on to see how ridiculously easy it is to get Costco to give you some. [[{“value”:”

When I first joined Costco, I wasn’t all that cool with the idea of having to spend money to enter a store — especially given the amount of money I’d inevitably be spending in the course of my shopping.

These days, I don’t mind paying for a Costco membership because the amount I save during the year on groceries and household products alone more than makes up the cost of my membership fee. In fact, even if you only save $5 a week on groceries by purchasing them at Costco, when you subtract the cost of the $60 basic membership fee, you’re still ahead by $200.

But in addition to being able to save money at Costco, there’s also an almost ridiculously easy way to get Costco to give you free money year after year. And it’s a tactic I highly recommend if you like free money as much as I do.

Choosing the right membership could really pay off

Costco’s $60 basic Gold Star membership isn’t your only option for joining. You could also pay $120 for an Executive membership. Now, you may be thinking, “Why on earth would I pay double to join Costco?” But the answer is simple.

Costco’s Executive membership gives you 2% cash back on almost all purchases. A few select items, like gas, food court meals, and stamps, are excluded from that benefit. But you may find that the majority of the products you buy at Costco are eligible for cash back. And in the course of a year, that free money could really add up.

Say you spend $100 a week at Costco, or $5,200 a year. Costco will give you $104 of that back if you have an Executive membership. Remember, you’re paying $60 for the upgrade from the basic membership. But still, with $104 back, you’re up $44 for the year in total. That’s not a bad deal.

In fact, it absolutely pays to get an Executive membership if you expect your Costco spending to exceed $3,000 in a year. That’s because 2% back on $3,000 is $60, which covers your upgrade cost. From there, every dollar you get back is pure profit for you.

Your free money could really add up

The more money you spend at Costco, the more cash back you’re eligible for with your Executive membership, up to $1,000 per year. Of course, you probably don’t want to aim for $1,000 per year because that means you’ll have spent $50,000 at the store. And, well, that’s a lot of money.

But Costco sells a lot of big-ticket items, like furniture, electronics, and appliances. If you buy those at Costco, you could get paid back a portion of their cost.

You should also know that vacations booked through Costco Travel also qualify for cash back through an Executive membership. It’s gotten expensive to travel these days, so if you’re going to book a $4,000 vacation, you might as well do so through Costco if there’s a package that works for you and you get $80 of that back.

When you buy groceries at your local supermarket, has the cashier ever handed you a $5 bill as a thank you for your business? Probably not. But Costco will actually give you free money for shopping there if you have the right type of membership. So it pays to budget for the Executive version if you go there often enough or have some larger purchases on your radar you’re planning to make at Costco.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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