Wholesale clubs can save you money, but beware!

I have been a long time customer of Costco, even back when they were called Price Club. Yes, they charge a membership fee at this wholesale chain but if used advantageously you can come out ahead. But saving is not just a matter of buying all you can buy at these wholesale marts that can sometimes look like airplane hangars.

The key to long term saving using Costco is to limit most of your buying to everyday items that are used frequently (soap, detergent, etc.) or items with a long shelf life that you use regularly (sugar, vinegar, etc.) You reap a tremedous cost savings in buying these types of items in bulk because you will always be buying them for everyday use. So why not buying them in a large quantity and save while you are at it. This way, you will always have the item on hand and end up making less trips to the supermarket which brings you extra savings on time and gas. Over time these targeted purchases can save you tremendously over retail prices at supermarkets and department stores.

Now buying everything in bulk that you can buy at wholesale prices is not always a good idea. Items that are quick to perish or spoil can end up being budget busters. For a family of 5, it might make sense to buy eggs in 3 or 4 dozen packs. For a couple of 2, a lot of those eggs will see the trash bin before they're cracked open. Now that would be wasteful. I've known many people who make this mistake of buying in bulk when they should be buying regular portions. Heck, I've made this mistake. So you have to watch yourself to determine what items will help you save from buying in bulk and others that'll do nothing more than deplete your funds. So think twice before picking up that 5 gallon tub of mayo while happily pondering about all those dollars you'll save.