CFA Exam and Time Management?

Question

I am taking my first CFA exam (level I) Dec 2008. I am finishing my first CFA book and also using Schweser study notes. i feel like i am running out of time. should i focus most of my attention and time on the study notes (since they are shorter and to the point)? Do i have to memorize all of the formulas in the curriculum?

Answer 1

You're doing fine.  Actually, you're ahead of schedule. It's only July and the exam is in December. It takes about six months to study (depending on your discipline and how smart you are).  

However, this doesn't mean you should relax.  Whether you should stick only to the study notes depends upon your understanding of accounting and finance.  If you are a COMPLETE newbie to finance and accounting, it is good to read for concepts (not memorize) certain sections of the source material.  However, most of your time (or all of your time) should be spent on the study notes.  You DO have to memorize the formulas.  The exam format works that you are short of time, not brain power.  So, you have to be able to quickly recall the formula, apply the variables and come up with the answer.  In the multiple choice section, all the answers will 'look okay' based on basic errors, so you can't guess like in other standardized tests. The essay section is certainly one of those things where you need to blaze and focus on buzz-terms and applying the terms.

Don't panic.  This is what to do.

First, READ the study notes for concepts.  There will be points where you don't get the concept.  Read it again.  If you still don't get it, go to the source material.  Take a practice exam. You will FAIL that exam.  Don't worry, that's normal.  

Now go back and read for CONTENT.  Aha! Now all those questions start to make sense and you start to see how, where and why you need to pay attention.  Take another practice exam.  You will probably fail again.  Don't despair.  

No memorize the formulas.  Make flash cards.  Take the cards with you everywhere.  I didn't buy mine as making the cards helped me memorize the formulas.  Now read the study notes again.  Make sure you know all the formulas.  Isolate the buzz phrases and the key terms that define the concept.  Memorize those phrases and terms. Now take a practice exam.  You should pass, but don't dispair if you don't ace it.  You can go through this many, many times and still get 70% right.

Keys to success:

Discipline.  A little every day.  After work, go find a quiet place away from home and other distractions. I went to the public library, put in monotonous music into my iPod and studies for 2.5 hours/day. Some days sucked.  Some days, were break throughs.  You have to give up your weekends, too.  This is not like university. You cannot cram for this exam.  You need to KNOW it backwards and forwards.

Tell your friends and families that you need their support for this test.  For 5-6 months, you are going to be a minor state of discomfort.  You then get your life back after the test is over.  Then you get a few months off, then back to the grind in December.

YOU CAN DO IT!!!