There are many different investments you can make to make money. For example, you can buy stocks that increase in value over time or that pay quarterly dividends. You can also buy bonds that pay interest on a regular basis.
Today, more and more people are investing in CDs for risk-free returns. The great thing about CDs is that, unlike a stock portfolio, you can’t lose your principal due to changing market conditions. As long as your bank is FDIC insured and you have less than $250,000 on deposit, you’ll only earn interest and won’t lose your money.
But there are low-cost investments at Costco that can also yield big returns — in fact, with $60 you could potentially earn a lot of cash back while you shop.
If you shop at Costco often, it’s a good idea to renew your membership.
Costco shoppers can choose from two membership levels: a basic (or Gold Star) membership, which currently costs $60 per year, and an executive membership, which costs $120. You might be wondering why you’d want to pay an extra $60 to join Costco, and the answer is simple.
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With an Executive Membership, you’ll get 2% cash back on your purchases at Costco, which could add up to a lot more than the $60 upgrade fee. whole Costco Membership — and more.
For example, let’s say you shop at Costco most weeks throughout the year, spending $150 each time. Multiply $150 by 50 to get $7,500. With an Executive Membership, you get $150 back on your $7,500 spend at a 2% return rate – more than enough to cover the full $120 cost of the Executive Membership, plus some left over.
Plus, if you’re a regular Costco shopper, you might be able to earn even more cash back on one-off purchases throughout the year. If you typically spend $150 at Costco every week, buy a new TV on Black Friday, and buy a ton of holiday gifts, your annual spending might be $10,000. With 2% cash back, you could get a whopping $200.
Of course, the risk in upgrading to a Costco Executive Membership is that you won’t pay enough to recoup the $60 upgrade fee. do not have The risk is that if the Executive version doesn’t work for you, Costco could allow you to downgrade your membership to the Basic version and pay the difference between the cashback you earned and the $60 it would cost to upgrade.
For example, say you get an Executive Membership and only spend $2,500 at Costco, at 2% you’ll only get $50 back, so you’ll lose $10 of the $60 it would cost to upgrade. However, if you downgrade to a Basic Membership, Costco will refund you the $10 you didn’t get back, so you’ll make money either way.
Upgrade now before the Executive Membership price increases
Currently, joining Costco costs $60 for a basic membership and $120 for an executive membership, but those prices will increase starting September 1. At that point, a basic membership will cost $65 and an executive membership will cost $130.
Admittedly, these price increases aren’t huge, but if you’ve been considering a Costco Executive membership, it might be cheaper to upgrade before September.
There are plenty of ways to put your $60 to good use, but paying to upgrade to an Executive Membership may be the smartest financial decision you’ll ever make.
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