Your Google Drive is stressing you out because there are so many folders and files and it's overwhelming to organize them all.
DO NOT LET MY DRIVE BE YOUR FILE LOCATION.
You can DRAG files from Google Drive to the folders on the left side. If you have too many folders, this can become overwhelming. Have a maximum of 3 to 5 folders in My Drive. These are your 3-5 big categories. Create subfolders in the folders.
One of the folders is “My Files” to which you simply drag EVERYTHING. All your folders. All your files. Just drag them there. This way, when you go to “My Drive,” you won't see a sea of documents. If there are documents there… don't think, just drag in “My files”. (I call my folder “Hot Mess”). Keep your My Drive CLEAN all the time.
When you use a file, organize it. When the file is open, there is a folder icon next to the document name. Sort your files into your folders, this could be with a shortcut. Get in the habit of using that folder icon from within the document. Not sure where to put it? Simply add it to your “Hot Mess”/”My Files” folder.
Temporarily add a shortcut to a folder in My Drive. A folder I'm currently working on to organize files. I'll add a My Drive shortcut to appear on the left side. Making it easy to drag files from my “Hot Mess” folder to the desired location. Delete the shortcut when you're not actively using it to organize.