Thoughts on the Level 1 CFA Exam
Having recently written the Level 1 CFA Exam*, I would like to offer some thoughts for those considering taking the plunge.
- 300 hours means 300 hours
CFA Level 1 candidates are typically advised to study 300 hours for the exam. I initially scoffed at the suggestion; unfortunately, it’s not an exaggeration. You should consider putting in that much time if you have the capacity. The exam covers 10 broad topics, and you never know what you may be asked on the exam.
Don’t think about skipping sections, either, because you studied accounting or minored in statistics five years ago. Even as a licensed CPA, I couldn’t ignore the entire financial reporting and analysis section. Let’s face it — tasks completed at your day job don’t mimic questions that are designed to trick you under time constraints. Practice, practice, practice, regardless of your background.
Full disclosure: I didn’t track my study time, nor do I think I reached the 300 hour threshold. Had I failed, I wouldn't have been surprised for this very reason.
2. Don’t let your mock exam and quiz scores discourage you.
This may be the most difficult mental hurdle to overcome. Most of us hate being wrong, and the practice exams will continually tell you that you are wrong because you cannot recall a formula or even comprehend the question at hand. It’ll happen over and over again; expect it to affect your spirits.
You must fight this feeling.
I’ve heard of people who never scored higher than 60% of mock exams pass the Level 1 exam on their first try. Moral of the story: don’t give up.
3. Becoming a CFA charterholder is not a “silver bullet” for your career, nor is it a Stanford MBA replacement.
I’ve met several people who began the CFA Program because they think becoming a CFA chartholder will dramatically change their career like they recently received a MBA degree from a top business school. It’s not.
I think of the CFA program as a tool.
It won’t magically get you a job you otherwise aren’t qualified to do. It won’t make you equally qualified as a Harvard MBA, either. I’m not arguing one over the other — they’re just different.
What the CFA Program is: a rigorous program designed to test your knowledge of a multitude of financial topics. It also shows employers that you have deep knowledge of those topics, as evidenced by your passing of three different exams. It could help advance your career, but don’t expect it. I enjoy the program because it helps me identify gaps in my knowledge and what I need to learn to become a more well-rounded professional. Charter or no charter, it’s a benefit in my eyes.
4. Exams are expensive. I hope your employer will pay for them.
The Level 1 exam cost me about $1,400, more than all four sections of the CPA Exam combined. You’re also unlikely to become a CFA charterholder without failing at least one exam. Oh, and learning materials aren’t cheap either; start filling up that piggy bank now.
5. Don’t spend a lot of time on Reddit’s r/CFA and other forums.
It seems to me that many candidates spend half of their free time on forums either complaining about studying or asking for answers to specific questions. Don’t fall for this trap.
It’s true what they say — Level 1 is 5 miles long and one inch deep. Not understanding a few questions won’t kill you, but a lack of practice time will.
I found r/CFA to be a helpful resource at the beginning of the process to learn about different study materials and study methods. Once your study schedule is set, don’t lurk on the forums excessively.
6. Ask your friends and family for support.
If you study for a several hundred hours during your free time, your personal relationships will be affected. To minimize the negative impact, explain to your loved ones what you are about to do and why you are doing it. Then, simply ask them for support throughout the process. Friends and family will be much more supportive when you approach the exam this way instead of springing on them last minute that you won’t be around for 4–5 months.
—
Still excited to write* the exams? You’re crazy.
Good luck and prepare for a struggle, crazy person.
*“Writing an exam” sounds incorrect, but apparently not to the CFA Institute. My entire life I have “taken” exams, not written them. Weird.
