The correct spelling of the phrase "am saddle" is actually "I'm saddle." The contraction "I'm" stands for "I am." The phonetic transcription for "I'm" is /aɪm/ and for "saddle" is /ˈsædəl/. The confusion in spelling may be due to the similarity in pronunciation between the vowels "a" and "i." Therefore, it is important to pay close attention to the context and meaning of a phrase to ensure that it is correctly spelled.