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Joining Costco has a lot of benefits. Not only do you get access to great prices on groceries and household products, but you can also take advantage of other perks like affordable travel packages, home improvement services, and more.

You have two options if you’re joining Costco. You can buy a Gold Star membership for $65 a year, or you can upgrade to an Executive membership for $130.

In exchange for paying double, an Executive membership gives you 2% cash back on your Costco purchases (excluding gas and gift cards, along with a few other Costco buys). And if you shop at Costco enough, you might easily earn enough cash back to recoup the extra $65 an Executive membership costs.

But while the idea of earning 2% cash back at Costco might sound tempting, that doesn’t mean an Executive membership is right for you. You should stick to a basic Gold Star membership if these circumstances apply.

1. You don’t live anywhere close to your nearest Costco store

If you don’t live near a Costco store, there’s the option to order products online and have them shipped to your door. But if you do that, you won’t get the maximum value out of your membership.

Costco’s online prices are higher than its in-store prices because they account for the cost of shipping and handling. But if your goal in joining Costco is to save money, then you’re generally better off doing your shopping in a store.

If living far away from your nearest Costco will make it difficult to visit, then you may want to stick with a Gold Star membership instead of an Executive membership upgrade. You may not spend enough to benefit financially from the higher-cost membership if you only make it to Costco a few times a year.

2. You don’t do a lot of cooking

Costco sells more than just budget-friendly groceries. But let’s be real. How much money will you really spend on items like household cleaners and toilet paper?

If you don’t cook often and won’t be buying much food from Costco, then you may want to stick with a basic membership. It takes $3,250 of annual Costco spending to make back the $65 upgrade fee for the Executive membership. But if you’ll hardly be buying groceries, your chances of meeting that threshold are somewhat low.

3. You’re on a tight budget and need to limit your spending

There’s a pitfall that Executive members at Costco tend to fall victim to. Since that membership gives you 2% back, you may feel like you have more of a license to spend money on extras or impulse buys, since a portion of your purchases comes back to you.

If you need to stick to a budget, a basic membership may be better. Not only does it cost less, but you may be less likely to fall into the line of thinking that your purchases aren’t as expensive because you’re getting a percentage back.

You don’t need an Executive membership to earn cash back on Costco purchases

It’s easy to see why you’d like the idea of earning cash back on the items you buy at Costco. But you should know that you can earn cash back with a Gold Star membership by using the right credit card when you check out.

You may, for example, find a credit card that gives you 2% back at Costco so you don’t have to pay $65 extra to join. Click here for a list of the best credit cards for Costco.

Costco’s Executive membership is pretty popular. In fact, as of July, a little more than half of all Costco members paid for the Executive tier. But that doesn’t mean an Executive membership is worth it for you, so you may want to stick with a basic membership if you can relate to any of the circumstances above.

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Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.