It costs up to $130 to join Costco. Here’s how to get a free membership

Costco is different from other stores because you can’t just walk in and shop. Instead, you’ll need to sign up for a membership to gain access to Costco stores. And while you can technically shop on Costco.com without a membership, some items on the site are only available to members. You’ll also pay a 5% surcharge for online orders as a non-member.

At Costco, you can choose from two membership levels. The basic option (Gold Star) costs $65 per year, and the Executive membership costs $130. But the benefit of the Executive membership is that it gives you 2% cash back on your purchases.

You might assume that getting an Executive membership doesn’t make sense because of the higher price. But in fact, if you play your cards right, an Executive membership could be your ticket to shopping at Costco for next to nothing.

When you earn enough cash back to pay nothing to access Costco

An Executive Membership at Costco is a great deal for people who shop at the store regularly. If you spend more than $3,250 a year, upgrading to an Executive membership automatically makes sense because although it will cost you another $65, in this situation you will again earn more than $65.

Plus, based on the 2% cash back rate for the Executive membership, if you spend $6,500 a year at Costco, you’ll earn $130. And that covers the cost of your all membership. It’s that simple.

You might be thinking, “Can you really spend $6,500 a year at Costco?” But if you shop there most weeks, the answer is a resounding yes.

Let’s say you visit Costco 36 times a year and spend $150 per visit. This is 5400 dollars. After that, all it takes is one major purchase to reach the $6,500 threshold, be it a new TV, laptop or piece of furniture.

Alternatively, you can do your holiday shopping at Costco and spend a little over $1,000 if you need to buy a lot of gifts. One vacation booked through Costco Travel can also help.

The point is, there are many ways to spend $6,500 a year at Costco. While you shouldn’t spend extra money just to cover the cost of your membership fee, you may find that it happens naturally.

Membership is worth paying for, even if it’s not free.

Spending $6,500 a year at Costco may not be feasible for you. If you only go to the store once a month and typically spend $250 per trip, that’s $3,000 per year.

In this case, the Executive membership still makes sense, since a one-time purchase can help you break the $3,250 mark. But going from $3,000 to $6,500 is quite difficult.

But if you don’t end up getting your entire Costco membership paid for in the form of an Executive Membership cash back, don’t worry. You’ll likely still get a lot of value out of your membership, so if it costs you a little money per year, it’s worth it.

In addition to saving on groceries and household items, Costco offers the following benefits:

• Inexpensive glasses and vision testing
• Lifetime service when purchasing tires
• Affordable in-home installation services.
• Discounted gift cards
• Inexpensive and high-quality gasoline.

And remember: If you use the right credit card to shop at Costco, you can earn rewards that way, too. Click here to see a list of the best credit cards for Costco so you can get even more value..