Image courtesy of Can Pac Swire
Image courtesy of Can Pac Swire

There has been a lot of news lately about the likelihood of a downturn in the Chinese economy and how that may have an impact across the rest of the world. It can be tempting to worry and panic about this sort of thing, whether you run your own business or work for someone else. However, it can be wise to just make sure that you are ready to handle what the economy may throw at you.
It is likely that there will be some knock on effect in most economies. There is likely to be a shrinking of economies. Increase in prices, particularly on items coming from China and many companies may also be effected which could lead to lower wages, a slowing of consumption which could lead to lower profits and a reduction in employment. On a personal level this may mean that you have a reduced job security, less chance of a pay rise or even a pay cut, higher prices and if you run a business it could mean a cut in profits. This may not happen, of course, but it is good to be prepared for the worse.
In order to prepare it is wise to make sure that you have some money put by as a buffer. Whether prices go up, your wages cut or you get laid off, a chunk of money is always handy. In order to save this you may need to cut back on your spending. You may be able to cut back on some luxuries or even cut back on some of your day to day spending. This is also a good thing as you may need to do this too as a result of the changes in the economy, if prices go up or your income goes down, so it will be good practice.
If you have any debts, this could be a good time to pay them off. It is not always easy to predict what will happen with interest rates, but you will be better off anyway if you pay off debts as you will no longer be having to pay the interest payments. This may not be easy, but it is worth a try.
It could even be wise to update your CV or resume and get an idea of what jobs are available in the market and what skills are needed. It may be too late to do drastic retraining but you may be able to do a few things to update your skills if necessary. This could be some short training or perhaps some voluntary work to get some more experience.
Many of these things would be worth doing anyway, even if there are no significant changes to the economy or no changes that have any significance to you. If you can pay off your debts anyway, save up some money and widen your employment prospects, you will be more confident and protected against any possible changes to your circumstances in the future.