How to Reduce Your Financial Anxiety During COVID-19

• Author: Bryan Miller
• Posted: 2024-11-14

Like many Americans, you may be feeling some profound financial anxiety these days as COVID-19 threatens the overall economy as well as your own personal financial situation. However, when you are under stress, you tend to make rash and ill-conceived financial decisions. Remaining calm about your finances is the key to doing what is right for yourself in both the short and long-term. There are ways to reduce your financial stress, even if it feels like you have little hope in the present. COVID-19 will eventually pass, and you will want to minimize some of the damage that it can do to your long-term financial health.

Prioritize Your Debts

Many people see their bills each month and think that they all have to be paid at once. That is what common wisdom would suggest since each one is stamped with a due date when your creditor expects payment. However, different lenders have varying policies about grace periods and payment terms. Your budget will have things that you absolutely need to have each month, including housing, food and insurance. However, you may be able to fall behind on some payments and it will not be the end of the financial world. Try to separate essential payments from ones that may be able to wait a bit until your personal situation changes.

Negotiate Forbearance

Many lenders are working with their customers during this difficult time in an attempt to minimize the financial damage. Remember that many lenders recover pennies on the dollar if you end up in bankruptcy if they are even able to recover at all. It is not in many creditors' interests to see you go under since it will hurt them too. Thus, they may be willing to give you some sort of forbearance to make your financial life easier. Try to have a conversation with the lender to see if there is any room for negotiation or special payment terms. Some mortgage lenders are obligated by law to work with you right now. Other lenders may be willing to help because it is in their own self-interest to do so.

Side Hustle

While it may be difficult to work on the side if you cannot even find a primary job, know that many companies are actually increasing their use of gig workers because they do not want to take on permanent workers until there is more visibility in the economy. This means that you can earn some money here and there that can help improve your finances right now. Make a list of the skills that you have that you are good enough at that someone would want to pay you for it. While Uber and Lyft report low volume, you may even be able to get gig work delivering food or doing other chores for people. Sometimes, it is a few hundred dollars here and there that can make the difference between being able to pay the bills and going into debt. While the job market seems dire, there are more opportunities out there for side hustle right now than you think.

Block off Financial Time

The hard part about financial worries is that they overtake practically every aspect of your thinking and remain in your head at all times. While it is easier said than done, try to keep those thoughts out of your head for most of the day. The best way to accomplish this successfully is to set aside a certain time of your day to deal with and worry about your financial situation. This includes going through your bills and talking to creditors. Try to keep this time towards the end of your day so that it does not overshadow and ruin the rest of your waking hours. Thankfully, many creditors have business hours into the evening.

Research Your Benefits

Congress and your state government have various programs to help you stay afloat financially during this time. From expanded unemployment to the Paycheck Protection Program, the amount of government stimulus into the economy is unprecedented. There may even be programs that you do not even know about that are there to help you. Take some time to do interest research to learn about every government program that can possibly help you through this time. Besides government help, there are community resources available that you should not hesitate to take if you need them.