Costco has built a loyal following by offering bulk discounts on everything from groceries to household essentials.
For many shoppers, the warehouse giant is synonymous with savings. But that doesn’t mean everyone can afford to buy in bulk.
As of late 2025, almost 25% of consumers were living paycheck to paycheck, according to Bank of America. People in that situation can’t necessarily afford to buy 24 rolls of paper towels at once, or a two-month supply of nuts, seeds, or salad dressing.
But for people who can afford to shell out a little extra to enjoy Costco’s bulk pricing, the savings can be huge.
Personal finance expert Dave Ramsey, however, cautions that buying in bulk doesn’t automatically mean you’re getting a good deal. And in some cases, buying in bulk could cost you a lot of money.
Buying perishable foods in bulk can backfire
One of Ramsey’s biggest Costco warnings involves perishable food items.
While large quantities of fresh produce, dairy products, baked goods, and other grocery staples often carry lower unit costs, those savings can disappear if food goes bad before it can be used.
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Ramsey says Costco shoppers should carefully evaluate how much of a product their household can realistically consume before purchasing oversized packages. He also cautions against bulk-buying these items specifically:
- Fruits
- Vegetables
- Dairy
- Perishable items
- Condiments
- Spices (which can outlive their shelf life and flavor) Source: Ramsey Solutions
This is especially true for smaller households.
A family of five may have no trouble finishing a large container of berries or a multi-pack of salad greens. A single person or couple, however, could find themselves throwing away a significant portion of what they purchased.
Food waste remains a costly issue for many households. Even if a bulk package costs less per ounce, the purchase becomes more expensive if part of it ends up in the trash.
Of course, food waste is also a national problem. About 30% to 40% of the U.S. food supply inevitably goes to waste, according to the USDA. In 2010, $161 billion worth of food was thrown out.
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Don’t stock up on products you rarely use
Ramsey’s advice is simple – only buy perishables in bulk when you’re confident you’ll use them before they expire. But he also says shoppers should be careful to not buy products that aren’t part of their regular rotation.
One of the things Costco does so well is the treasure hunt. The company purposely introduces new items on a regular basis to create a sense of newness and urgency.
But before you buy anything in that category, ask yourself if you use it consistently. If not, you should probably pass.
All told, Ramsey isn’t opposed to shopping at stores like Costco. In fact, he acknowledges that buying in bulk can be a powerful money-saving strategy when used correctly.
Ramsey says it does pay to load up on products like canned goods, dry pasta, rice, and other household staples. These products can be stored for extended periods, making it easier to capture genuine savings.
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Finally, Ramsey recommends creating a shopping list before entering the store.
Costco’s treasure-hunt shopping experience can easily encourage impulse purchases, making it easier for people who are cash-strapped to plunge even deeper into debt. And if you end up with a credit card balance you can’t pay off due to shopping at Costco, you could easily negate the bulk savings you otherwise would have enjoyed.
Maurie Backman owns shares of Costco.