The best way to save money is to set spending limits – but allowing the occasional splurge can help

• Aggressively limiting your spending is kind of like dieting – at some point, you’re going to overindulge and blow all the progress you made.
• Instead of saying no to every single “indulgence”, a financial counsellor says it’s better to say yes once in a while and let yourself enjoy your money.
• Don’t toss your budget, though – it’s still important to track your money, save, and spend within your limits. Consider giving yourself a monthly budget for “fun money” so you don’t feel overly restricted.

If you’ve ever blown your budget on eating out, shopping, or entertainment, you know some of the biggest financial issues we deal with can stem from a basic lack of self-control.

If you’re hoping to boost your savings, focus on your investments, or get out of debt, curbing – or completely eliminating – impulse purchases seems like the most logical solution.

But there’s actually scientific evidence that depriving yourself could do you more harm in the long run. That’s why people who crash diet typically end up craving and eating more junk food.

On the flip side, some behavioural scientists think allowing yourself a lapse in self-control every now and then could be key to maintaining will power.