Healthy boundaries are important for self-esteem, teaching others how to treat you, and determining what you will and won't accept. While setting healthy boundaries has benefits, it also has costs like confronting draining relationships, redefining outgrown relationships, letting go of beliefs and interests that no longer serve you, and handling rejection from those who disapprove. However, setting boundaries allows you to live life on your own terms and the benefits always outweigh the costs.