In the world of personal finance, I often see the word “financial mutant” floating around. It sounds ominous, but the use of “mutant” here is a good thing. These aren’t your average savers or spenders—they’re people with certain habits and mindsets that make them unusually good with money. So what exactly is a financial mutant, and could you be one without even knowing it?

What is a financial mutant?

Brian Preston from The Money Guy coined the term “financial mutant” as a way to describe people who “focus on what’s important and ignore the rest.” In this video, Preston says if you could boil what a financial mutant is in simple terms, it would be “deferred gratification,” or “the ability to sacrifice a little bit today for a more beautiful tomorrow.”

The term has caught on as a catch-all to describe someone who has developed a nuanced understanding of money management. They recognize when it makes sense to be frugal and when it’s appropriate to spend. Unlike strict budgeters or impulsive spenders, financial mutants have a flexible approach to money that adapts to different life stages and circumstances.

The financial mutant mindset

Financial mutants think about money differently. They don’t adhere to rigid rules or succumb to societal pressure to spend. Instead, they recognize the true value of purchases beyond just the price tag. They can zoom out and are comfortable with financial trade-offs, like understanding how to have good debt.

Key traits of a financial mutant include:

Adaptive spending habits

Value-based decision making

Long-term financial vision

Comfort with financial fluidity

Are you a financial mutant?

You might be a financial mutant if:

You can comfortably switch between frugal and generous spending depending on the situation.

You make purchasing decisions based on value rather than just price.

You’re not afraid to spend on things that truly matter to you, even if they seem luxurious to others.

You can adapt your financial strategy as your life circumstances change.

How to become a financial mutant

Again, “financial mutant” is just a buzzy way to distinguish people who have a healthier, savvier money mindset than most. Here are some small ways you can start to become a financial mutant, with resources to start your journey now:

Develop financial self-awareness: Understand your spending triggers, financial fears, and long-term goals. You should consider asking yourself some tough questions about the root of your relationship with money.

Practice intentional spending: Before each purchase, ask yourself if it aligns with your values and goals. Physically write down the things you want to buy before you buy them, and learn to differentiate between price and value in your purchases.

Embrace financial education: Continuously learn about personal finance, investing, and economic trends. These free courses are a great place to start.

Challenge financial norms: Question conventional wisdom about money and find what works best for you. Be prepared to adjust your financial strategies as your life evolves. For instance, don’t let these myths stop you from investing.

Plan for the long-term: While being adaptable in the short term, always keep your long-term financial health in mind. For instance, here are all the kinds of retirement accounts you could be taking advantage of.

The bottom line

By combining the best aspects of frugality with smart spending and long-term thinking, financial mutants know how to practice delayed gratifications. Whether you’re already a financial mutant or aspiring to become one, remember that the key lies in flexibility, continuous learning, and aligning your financial decisions with your personal values and goals. If you need a professional opinion for reviewing and managing your debts, look into a financial advisor or even a financial therapist.