In the cinematic world, mutants have superpowers that they use for good (superheroes) or evil (villains). In the real world, genetic mutations are unlikely to create superpowers. But financially speaking, you could be a mutant and not even realize it.
Financial planner Brian Preston, known as The Money Guy, coined the term “financial mutant.”¹ According to Preston, financial mutants have a unique mindset about money.
They think about the value of every dollar they spend and know when to save and when to splurge. They don’t fall prey to trends or spend money impulsively. This lets them work toward long-term goals without sacrificing in the short term.
Think you might be a financial mutant? Here’s how to recognize the signs and some steps you can take to inject more mutant energy into your financial life.
Are you a financial mutant?
Creating and sticking to a budget can help you reach your financial goals, but budgets can also feel restrictive. When you restrict your spending too much, you risk taking some of the joy out of life.
Financial mutants understand how to work with a budget while maintaining flexibility.
For example, you might have a standing weekly dinner date with your best friends to stay connected to each other’s lives. If this weekly date costs you $200 per month, you could consider cutting it when you make a budget. But if that weekly date is something you look forward to and enjoy, skipping it could sap some meaning from your life.
Instead, you should keep the date but opt for a cheaper meal (or skip the drinks) and consider where else you can cut expenses. Financial mutants can adapt how they spend and save their money based on the situation.
How to become a financial mutant
Becoming a financial mutant lets you work toward your long-term goals by keeping a flexible mindset about your everyday spending. Here’s how to develop a mutant mindset to reach your financial goals.
Learn about your spending habits
Before you make any changes to your budget, you need to understand your money habits. Do you routinely go on an online shopping spree after a stressful day at work? Do you avoid going out for dinner or drinks with friends because you’re afraid of spending too much?
Understanding your current relationship with money is essential if you want to change your habits and mindset.
Spend consciously
As consumers, we are constantly bombarded with ads that try to sell us things we probably don’t need. This makes it easy to spend money unconsciously before asking yourself whether you need that pair of work pants that feel like sweatpants or the hair tool that promises to tame your mane in minutes.
Becoming a financial mutant means embracing conscious spending and considering each purchase’s value before clicking “buy.” Is the value you’ll receive worth the money you’ll spend? If the answer is “no,” you can confidently move on and save that money for something else.
Level up your finance knowledge
Many of us didn’t learn about personal finance in school, so as adults, we are responsible for our own financial education. In fact, a Chime survey about the gaps in financial education found that 67% of people said they learned “a little” or “nothing at all” about personal finance from high school.
Even if you did take a personal finance course in high school, it’s still vital to continue learning about money. After all, the more you know about personal finance, the easier it becomes to manage your money and work toward your financial goals.
Subscribe to personal finance blogs and podcasts and monitor economic trends to stay educated and potentially maximize your earnings and savings.
Make a long-term plan
What you do in the short term can affect your finances in the long term. If you want to retire at 60 with enough savings to live comfortably for another 30 years, you must prioritize that goal now.
In this case, your priority will be to max out your retirement savings accounts, like a 401(k) or an IRA. You’ll also want to ensure you have enough emergency savings to get you through a slump without affecting your retirement income. And if you have high-interest debt, paying that off should be a priority.
With these long-term goals covered, you can better budget for everyday expenses and occasional splurges to keep you on track.
Mutate your way to financial freedom
Being a financial mutant can help you reach your long-term goals while allowing you to spend money on what matters most to you. By shifting your mindset, you can achieve your goals without cutting out the luxuries that bring you the most joy.
Not sure where to start? Learn how to make a budget that fits your life and helps you achieve financial freedom.