Have you ever had trouble sleeping because you were worried about your finances? Have you ever avoided checking your bank account balance because you’re afraid to look? You’re not alone. In their latest Stress in America survey, the American Psychological Association found that 72 percent of Americans reported feeling stressed about money during the previous month.

Adding to our normal money worries is the economic fallout of a global pandemic. Jobs have been lost. Businesses have shut down. And many Americans are left wondering how to cope with the resulting financial worries and concerns.

How NOT to Cope

Most people cope with financial worries by avoiding them altogether. Although this might seem like the easiest way to deal with the situation, it’s unhealthy for your mind and your wallet. Not addressing your financial concerns, can lead to increased debt and worse anxiety than you had before.

Here are some of the negative results of dealing with our anxiety the WRONG way:

• Relationship issues
• Insomnia
• Weight gain
• Withdrawing socially
• Coping in unhealthy ways (like overeating, drinking too much, and even drug abuse)

Tackling your financial problems may seem overwhelming, but it’s well worth the effort! Here are four simple things you can do to get started today.
Talk it out

Most people don’t like talking about money. But talking openly to a supportive friend can lessen your stress and help you gain perspective. They might even have some helpful ideas. Talking to a financial planner can boost those benefits even more. And a quick Google search can show you some of the organizations in your area that offer free help from professional financial advisors.

Make a Plan

Creating a realistic budget is not something most of us are taught in high school. And confusing financial terms like equity, escrow, depreciation, and bonds can make us feel out of our depth. But making a financial plan doesn’t have to be complicated. All you need is a piece of paper and a calculator. Here’s how to get started.

What are my financial goals? (Are you planning for retirement? Are you just trying to make ends meet? Or, are you trying to pay off some debt?)
How much money is coming in and how much money is going out? List all of your income and expenses.
Match your goals to your spending. If your income is less than your expenses, try to reduce the amount of money you spend on things that are less important to you.

Tackle Debt

Tackling your debt can seem overwhelming, especially if you owe on multiple accounts. But here’s a 3-step plan that can help!

Pay the minimum payment on all of your accounts so they remain in good standing.
Use any extra money you have to pay off the account with the highest interest rate first.
After the first debt is paid off, focus on the plan with the next highest interest rate. Keep doing this until all your accounts are paid off.

If it still seems like too much for you to handle on your own, don’t despair. Free financial planning services can be what you need to get a plan in place to tackle your debt.

Stay Positive and Realistic

It’s easy to spiral into negative thinking, worried that your debt is insurmountable, or that you can never pay it off. But that kind of thinking will only make it harder to take the right steps towards financial freedom. It might be challenging, but it’s not impossible. Imagine how you’ll feel each time you see your debt shrinking due to your hard work! Your financial anxiety will lessen with each small victory. You can do this!

That said, don’t be too hard on yourself if you slip up once in a while. Make sure your goals are reasonable and not too extreme for your circumstances. This will keep you balanced if you have any setbacks.

Even in the wake of a global pandemic, there’s a number of healthy ways to address financial worries and concerns. You can lessen your financial stress by talking it out, making a plan, tackling your debt, and having a positive and realistic viewpoint. So, if you’re stressed about your finances, manage your money the RIGHT way. You’ll be happier, healthier, and your wallet will thank you.

This article originally appeared in the Winter 2021 issue of CHOICES Magazine