KEY POINTS
- The generous sizes and extensive variety at Costco can lead to spending more than planned.
- Aldi provides budget-friendly store brands, with prices frequently similar to those at Costco.
- Grocery stores that are owned and run by people in the local community tend to be the most budget-friendly choice for numerous customers.
With its rotisserie chicken, food court choices, and sample stations, Costco has reached a near-cult following. Where else can you stock up on enough ketchup to last through an apocalypse or buy a cozy couch for less than $1,200?
It’s a simple location to accumulate travel rewards as well. And naturally, there’s the food court. Can you really visit Costco without grabbing a budget-friendly hot dog or slice of pizza?
For entrepreneurs and individuals with ample storage capacity, It’s hard to find a better deal than Costco. However, is it the ideal spot to stash your money? That could vary based on your shopping habits.
It’s easy to spend more than planned at Costco.
I have a shopping list for Costco that includes my preferred dairy-free buffalo sauce, rice, and ketchup. However, I often find myself spending more than I intend. Since Costco is about 30 minutes away from my home, I only visit every few months. Consequently, I usually end up buying more than I need to stock up.
Occasionally, I overlook the fact that I have three additional jars of Better Than Bouillon stored in the basement or a large bag of chicken nuggets in the freezer. Buying five pounds of peaches seems like a fantastic idea, but I frequently don’t manage to eat them before they spoil. With the addition of clothes, books, and toiletries, I’m fortunate if I can leave Costco spending less than $600.
When you compare prices by ounce, Costco frequently offers a more affordable choice, though this isn’t always the case. Additionally, if you overspend on perishable items or make impulsive buys, there could be alternatives that prove to be more economical over time.
Aldi provides affordable groceries and household products.
If you have an Aldi nearby, it can serve as an excellent alternative to Costco. Similar to Costco, Aldi’s store-brand products are typically much more affordable than well-known brands at standard grocery stores. For instance, I can purchase 100 ibuprofen tablets at Aldi for $1.99, equating to $0.019 per tablet. At Costco, 1,000 tablets cost $12.99, resulting in a price of $0.012 per tablet, which is not a significant difference.
A lot of Aldi locations offer a nice selection of dairy-free and gluten-free products, which are often expensive at regular supermarkets and difficult to locate at Costco.
The Aldi Finds section features seasonal, limited-time products such as pool floats, gnome decorations for different seasons, rain boots, and snow pants. These products rotate weekly and are frequently much less expensive than those at Costco or other retailers. For instance, I once paid $100 for Columbia hiking boots that turned out to be uncomfortable, while my $12 hiking boots from Aldi have successfully covered dozens of miles without any issues.
Local grocery stores frequently offer prices lower than those at Costco.
While not every city features an Aldi store, or it might not be conveniently located for you, it’s likely that you have an even more budget-friendly option nearby. Local, smaller grocery stores frequently offer competitive prices and a diverse selection of products.
In my area of Ohio, we have a store called Marc’s. These stores are smaller compared to Costco and most grocery stores, but they provide a diverse range of products. Their closeout section includes a variety of items like school supplies, t-shirts, and pet beds. Many of these products are purchased from places like Target or other similar retailers when they change their inventory for the new season.
I often discover Justice and Cat and Jack children’s clothing priced under $2 each. Although Marc’s doesn’t offer 2,000-count bottles of Ibuprofen, I can purchase generic cold and flu medication for under $5 per bottle. In contrast, Costco sells a three-pack of DayQuil and NightQuil for $29.99.
Marc’s is exclusive to Ohio, but many cities have their own local grocery stores that offer comparable prices. For instance, when I lived in Chicago, our neighborhood market did the same.
If you’re having difficulty with stay on budget Instead of going to Costco, consider exploring a grocery store in your neighborhood that is locally owned. While these stores might not have the same variety or those inexpensive rotisserie chickens you get at Costco, they often have reasonable prices. Plus, you won’t be tempted to splurge on that $1,000 patio set. However, if you’re in the mood for samples or pizza from the food court, a trip to Costco will still be necessary.
