Are You Saving Like a Hero?

X-ray vision, flight and superhuman strength are all fine superpowers to have. But in your day-to-day life, the superpower of saving can also get you out of any tough spot. You don’t need an alter ego or an arch-nemesis to feel like a hero. Having the know-how to overcome financial emergencies can make you feel like the star of your own superhero movie.

Here, we’ll look at some common money emergencies (and some not-so-common ones that superheroes might encounter) and show you how to harness your inner hero to save the day.

Need New Armor? Save for Clothes and Other Basics

Even the most skilled crime-fighting superheroes end up with a few rips in their capes and dings to their shields. Fortunately, with a little financial foresight, you can upgrade your gear in time for the next battle.

For clothes, shoes, and other basics you’ll need to buy on a regular basis, you don’t want to be caught by surprise after you’ve spent the month’s budget on gadgets and entertainment. Sock away whatever amount you can afford each week—even if it’s as little as $5 or $25—in a savings account that you won’t touch to cover other expenses.

In a few months’ time, you’ll have the resources you need to buy street threads and the clothes you need for work, whether you’re battling supervillains or tackling your day job.

Honing Your Superpowers? Save for College

Just as every superhero needs to learn how to use their powers, you might find you want to enroll in a college course or two to unlock your own innate skills.

529 college savings plans are investments that offer special tax benefits to make saving for college easier. You can invest your pretax dollars and use that money later (plus any earnings)to pay for certain education costs, like tuition.

Car Explode? Save for Unexpected Car Repairs

Superheroes usually beat the bad guys, but they might face some vehicular damage along the way—the occasional explosion is a hazard of the job. Even if you’re not racing across town to save innocent civilians, chances are you’ll have to contend with flat tires, fender benders, and engine trouble.

It’s important to save money each month for unexpected car repairs you might need along the way—and don’t forget about periodic maintenance. Setting up a money market account devoted to your car is easy, and you’ll thank yourself later. Adding a few extra dollars to the account every month will allow you to earn money through interest—and maybe even buy a new set of wheels down the road.

Need to Track Down a Supervillain? Save for an Unplanned Trip

Evil geniuses and other supervillains can be wily and elusive. Sometimes a superhero needs to travel deep into outer space to track down their enemy’s lair.

Even more mundane situations, like saving for your first post-pandemic vacation, can benefit from the superpower of saving. When you’re planning a trip to another city or another country, you should set a realistic budget at least six months in advance, and do the math to arrive at how much you’ll need to save each month to travel without breaking the bank. Don’t forget to monitor flight and hotel costs for a few weeks so that you can find a great deal.

Need New Superhero Gadgets? Save for a Short-Term Big Purchase

No one ever said being a superhero was cheap. Ray guns, choppers, the latest in crime-fighting tech—it all adds up.

If you’re thinking about making a big purchase in the next few years—whether it’s a new car or a pleasure item like a boat—now is the time to start putting money away to make sure you can afford your toys. Chip in $100 or so each month into a compound-interest-bearing savings account, and watch your savings grow. If you start early and can commit to not touching your money for a year, a certificate of deposit (CD) can often offer an even higher interest rate.

Looking for a Base of Operations? Save for Your First Home

Whether you need to summon the superhero squad to save the world or you just want to get your friends together for a backyard barbecue, everyone needs a home base.

A house is likely the biggest purchase you’ll ever make, and it can be tough to save for a down payment. Fortunately, if you have room in your budget, you can set up a system that makes saving painless.

Come up with a timeframe, such as three or five years, and calculate what you’ll need to save every month. Any unexpected windfalls, like tax refunds or gifts from family, should go straight into your savings fund.

Find Yourself in an Alternate Dimension? Save for All Unexpected Costs

If you find yourself in a strange part of the multiverse, you’ll be glad that you saved a few extra dollars in an all-purpose emergency fund. Even if you’re not off fighting villains, you should save for anything that comes your way—from last-minute travel to emergency home repairs to an unexpected change in employment.

But how much do you need to save, and how long should it take you to save it? For an emergency savings fund, you should have enough to cover your living costs for at least three months.

You’ll want to start off strong with your emergency fund, so if you don’t currently have one, you might want to put other savings goals on hold until you have a decent-sized war chest in case the unexpected happens. Then, as you approach three months’ worth of savings, consider shifting over to saving for other plans.

Recovering From Battle? Save for Your Medical Expenses

Life comes at you fast—and so do your enemy’s fists. Accidents happen to non-superheroes, too, so make sure you have some money saved when it’s time to pay for medical expenses.

Consider stashing away some savings for medical needs, either in an account that earns compound interest or in a health savings account (HSA). HSAs are tax-advantaged vehicles that allow you to move pretax income into an account used only for medical expenses.

Planning to Hang Up Your Cape? Save for Retirement

Retirement isn’t an unexpected expense, for superheroes or anyone else. But when you’re ready for it, you need to be prepared.

When it comes to saving for retirement, you’ll want to get started early. Compound earnings make every additional year you can spend saving money all the more valuable.

If you work for an employer that offers matching contributions to a 401(k), you might want to take advantage of that. If not, other options include IRAs, mutual funds and exchange-traded funds. Working with a financial advisor is a smart way to determine the level of risk you’re comfortable with so that you can develop a diversified portfolio of stocks and bonds.

Super Savers Assemble

As we’ve seen, there’s no shortage of goals worth saving for. The question is, what kind of saver are you?

• Budget Man: A mild-mannered computer programmer by day and a number-crunching Super Saver by night, Budget Man uses his superpower of tracking his spending and saving so that he knows how much he has to sock away at the end of each month.
• Automatic Savings Deposit Girl: When she was stung by an unplanned medical expense, ASD Girl sprang into action and joined the Super Saver squad. Now, she fights unexpected expenses by having a portion of her paycheck automatically deposited into her savings account.
• Sergeant Savings: A jack-of-all -trades who uses every gadget at his disposal to save for any contingency, Sergeant Savings makes sure the Super Savers stay solvent. From HSAs to 529 education savings accounts to IRAs, Sergeant Savings is ready for anything.
• The Emergency Funder: When the Super Savers get into trouble, the Emergency Funder springs into action. Thanks to her compound-interest-bearing accounts, she has the power of drawing on her savings when things get difficult.

Pick your Super Saver and get to work tackling your saving goals!

William Myers is a financial writer based in Dallas.