Deciding Between Basic and Executive Costco Membership Made Easy

Costco Memberships: How to Choose Between Basic and Executive

Not sure which Costco membership is right for you? There's one simple number you need to know. Find out what it is here.

If you're like me, you're often wary of upgrading to the so-called "better version" of any given item. Similarly, when I was first approached by a customer service representative at Costco about upgrading my Gold Star (basic) membership to an Executive one, I hesitated. That was about 10 years ago, and I've been an Executive member since. A Gold Star membership costs $60 a year, whereas you'll pay $120 a year for the Executive version.

The benefit of upgrading

The primary benefit of an Executive membership is 2% cash back on Costco purchases. Most Costco purchases will put extra cash back in your pocket in the course of a year, potentially covering your $60 Executive membership upgrade fee.

• Calculate Your Spending: Decide on an upgrade by evaluating how much annual spending is needed to make the upgrade cost-effective.

If you're on the fence, get the upgrade

If you're unsure, take the leap and upgrade, knowing that you can always downgrade if necessary. Costco offers a refund if you don't accrue enough cash back to cover the upgrade cost.

The only reason not to upgrade is if you're absolutely sure you won't spend enough to make back the extra $60. If you're undecided, upgrading is a low-risk option.