NASHVILLE, Tenn. (WKRN) — As inflation in the U.S. hits a 40-year high, rising prices are affecting every aspect of American life.

Financial expert Jon Maxson sits down with News 2’s Nickelle Smith for advice on how to manage money during this time.

“Its simple definition is inflation is too much money chasing too few products,” said Maxson, CEO and co-owner of Beacon Capital Management.

Maxson said inflation started to increase quickly when the COVID restriction started to lighten up, because more people are spending more money and the supply chain can’t keep up.

“Two areas families are most impacted by are gas/energy and food. They’re just astronomically high,” he said.

Maxson said there are some simple and tangible things people can do to help their bottom line.

  • Create a budget
  • Stick to the budget
  • Don’t take on any undue debt
  • Don’t dip into savings unless absolutely have to

“If you’re younger and saving for retirement that’s really for the future,” said Maxson about 401ks. “Unfortunately, a lot of people will use that as a piggy bank today. If you’re retired that’s what that’s for but if you’re working towards retirement you don’t want to have a long term impact for something that’s relatively short term.”