Ask Dave Ramsey: What Is Your Opinion About Wholesale Club Memberships?

Q: What is your opinion on wholesale club memberships??
Dave’s Answer:
My wife and I are members of Costco and Sam’s Club. We don’t buy everything at these places, but do they save you enough money on some things to justify the annual fee? I think so.
The biggest problem most folks run into with wholesale clubs is overbuying. I mean, who needs nine gallons of mustard? You don’t, unless you’re in the restaurant business. So if you don’t need at that level and won’t use at that level, don’t buy at that level! You’ve got to shop around and know your values.
Lots of people think overbuying isn’t a big deal, especially if it’s something that only happens by mistake once in a while. But the truth is it’s really dangerous. You should plan your shopping the same way you plan your budget—with great care and common sense. If you don’t, you can end up spending way more than you can afford on things you’ll never use. Talk about dumb!