What baby boomers learned from weathering the Great Recession — and what they regret

• Now in or near retirement, three boomers told BI about their experiences navigating past recessions.
• The 2008 Great Recession taught them to better navigate both the stock market and personal uncertainty.
• "Sometimes you're going to have bad luck," one said. "We just sucked it up and started over again."

Lynn Benning, 67, said every financial downturn has hit her differently.

During the stagflation of 1980, she was in her 20s, single, and stressed out about affording rent on an entry-level income.

Amid the 2008 Great Recession, she was married and in her 40s. She and her husband rethought their assets and retirement prep. They'd just bought a house, couldn't afford furniture for it, and ended up selling it later at a loss.

In today's uncertain economy, she's forgoing major purchases and focusing on building savings. Having cash on hand and avoiding credit card debt helped her reestablish financial stability in the past, she said.

"Sometimes you're going to have bad luck," Benning said. "We just sucked it up and started over again."

It's some much-needed perspective after the stock market's hectic week driven by the twists and turns of President Donald Trump's trade war. Billionaires, CEOs, and Wall Street have signaled they're bracing for an economic downturn. Recession jitters have Americans of all ages saying they're holding off on big purchases, delaying family and job plans, and feeling the emotional weight of economic uncertainty.

With policy whiplash from the White House, BI spoke with three baby boomers about their experiences with past recessions, particularly the Great Recession that followed the 2008 financial crisis: how downturns shaped their finances, major life decisions, and how they approach setbacks. They told us what they learned — and what mistakes young people should avoid.

Don't make drastic decisions

When the housing market crashed in 2008, Nancy Neff was in her mid-50s. She had most of her investments in her 401(k), and though she was losing money in the stock market, she didn't touch her retirement account.

Now, the 72-year-old Connecticut resident's investments have weathered two major economic downturns, but she still managed to retire comfortably with a nest egg of over $1 million after a long career in academia and software engineering. She said she receives a few thousand dollars in monthly Social Security but doesn't have to rely on it to pay bills.

"I put money in a diversified mutual fund and ignored it. I didn't play with it, and I didn't try to time the market," she said, adding, "I'm in pretty good shape."

For retirees — and hopeful retirees — the peaks and valleys of the stock market have caused financial anxiety. Some Americans told BI that they lost tens of thousands of dollars from their 401(k)s in recent months, and others said they are rethinking their plans to leave the workforce.

Still, older Americans BI spoke with cautioned against making rash investment decisions. In the long run, it's best to leave investments as is and ride out any market volatility, they said. BI has heard this advice from financial advisors, too. Per IG Wealth Management, it took the S&P 500 about six years to fully rebound from the 2008 crash, but other downturns have been resolved quicker.

If you can afford to leave your 401(k) alone, Neff said it's the wisest thing to do.

"Have six months at least of savings so that if something happens, you're not cashing in your 401(k)," she said. "Whether that's something happening to you personally or something happening to the larger economy, have a cushion."

This is the time to look for any possible way to cut costs

Beyond having a cool and calm stock strategy, boomers told BI it's important to have cash savings in case of a recession. Having an emergency fund can offer peace of mind in case of job losses, unexpected expenses, or high consumer prices.

It may be tough advice for people who feel like they're living paycheck to paycheck, but boomers said if there is ever a time in life to try to cut back and save, it's ahead of a possible recession.

Gail Lisenbard, 65, is doing her best to build savings. She's a philosophy lecturer at the University of Colorado Boulder but teaches remotely from Naples, Florida. The 65-year-old and her partner have paid off their mortgage, but they're trying to cut costs due to recession fears.

Lisenbard's mindful spending strategy began after she lost her job in the 2008 recession. Since then, she has struggled to find a job that offers a high 401(k) match and has learned how to save as much money as possible on her lecturer income.

She said she paid off her car, which used to cost her $200 a month, and has saved an additional $300 by cutting back on dining out and entertainment. Lisenbard also tries to save money by grooming her mini golden doodle, Abby, by herself.

"I'm saving by making some really serious decisions about what I can do, what I can't do," she said, adding that she hopes to retire this fall.

Financial wisdom comes through ups-and-downs

Some of the baby boomers BI spoke with expressed regrets about navigating past recessions. Benning said she wished she hadn't bought a house before the 2008 market crash, and Lisenbard wished she had built a bigger nest egg when she had a job with strong benefits.

At the same time, all said their takeaways from past recessions taught them how to better navigate the stock market, savings, and major life decisions in periods of uncertainty. They hope the wisdom they've gained over time will help them recover faster from future downturns.

A couple of months ago, as federal policy was beginning to change under Trump, Neff said she added more money to her emergency fund so that she could ride out economic changes. She's done the same in other times of unpredictability, and she said getting a bank account with compound interest allows her to build up her savings quicker.

She now spends her retirement traveling the world. A decade ago, just after she stopped work, she said she boarded a cruise to Europe and still chooses cheap lodging and transportation wherever she goes —because you never know what the future holds. When BI spoke with her this week, she was taking lace-making classes in Belgium.

"Live well within your means when times are good so that when times are bad, you still have a cushion," she said. "And I have always had enough of a cushion."

Have a tip or story to share? Contact these reporters via email or Signal at allisonkelly@businessinsider.com or alliekelly.10; and jdeng@businessinsider.com or @jdeng.20.