Wondering whether you should take the CFA level 1 exam? It is certainly a challenging test to crack but it is worth the reward it will bring to your financial career. But with the enormity of the task ahead, you may wonder, “Where do I even begin?” Don’t worry-you are not alone! The first big step toward success is to create a solid study plan. Whether one is sitting for the first time or working his/her way through Level 2 or 3, a structured CFA exam study plan can make all the difference. Let’s break it down into smaller pieces and set you off on the right path.
How Long Does it Take to Study for the Level 1 CFA Exam?
The CFA course exam requires dedicated and focused preparation. Trying to cram for the Level 1 CFA exam overnight just won’t work. Candidates, on average, study for approximately 300 hours but that is a base number. Depending on one’s knowledge of the material and study habits, sometimes many hours more are needed. It is not simply a matter of how much time one puts in but rather how that time is spent. It’s a marathon, not a sprint.
CFA Level 1 Exam: How Should I Prepare?
The preparation for the CFA Level 1 exam should be done strategically. One will have to intelligently distribute their time across the topics, assess the areas of strength and weakness, and modify their strategy accordingly in the process. First, get an overview of how the CFA exam is structured, what it covers, the format, and key focus areas. Set aside time for regular review sessions and practice exams to monitor your progress.
What is the Best Way to Create Your CFA Exam Study Plan?
The best way of developing your effective CFA exam study plan is to go about these key sections: determine the prep period as a whole, assess the difficulty of each topic, and set up a regular study routine. Finally, you’ll also need to select the best tool or resource for keeping yourself right on track. Now, let’s look at the various key sectors in detail.
Exam Prep Period for CPA
When to start your preparation is an important decision. This is generally advised to be at least 6 months of study time. You will, therefore, have ample sufficient time to master all the concepts comprehensively without feeling any kind of rush. But if you can afford more, that will be quite good. The earlier you begin, the more flexibility you will have in dealing with unexpected sets of challenges along the way.
Difficulty Level of CFA Exam Topics
Not all topics are created with equal levels of difficulty, and you’ll find that some areas are easier to understand than others. Determine which areas are the most difficult for you and devote more study time to those areas. The CFA exam is designed to test your knowledge in many areas, so you need to be well-rounded in your studying.
Study Routine for CFA Course
The only golden rule to prepare for your CFA exam is consistency. Make a study schedule, where studying a few hours per day may be more effective than setting aside greater blocks of time on weekends. Of course, your schedule should include regular breaks to avoid burnout and enough time for you to go back to previous material and for everything to sink in.
A Method for Executive Your CFA Study Schedule
Your study plan is only as good as your ability to stick to it. Use tools like calendars, apps, or even good old-fashioned to-do lists to stay organized. Set realistic goals for each week, and track progress. If you happen to fall behind, which just about everyone does at some point, don’t freak out. Just change your schedule around and keep moving ahead.
Set Up A Study Schedule for the CFA Exam
Setting a study schedule for the CFA exam is like drawing a roadmap through the vast amount of material one has to master. A well-planned schedule provides ample coverage of all topics, avoids last-minute cramming, and puts you on course for success. Let’s break down what your study schedule should look like for each level of the CFA exam.
Overview of the CFA Level 1 Exam Study Schedule
The CFA Level 1 exam is all about the basics of investment tools, ethics, and professional standards. Here’s a suggested timeline:
Months 1-3: Laying Foundations
Focus on Ethics, Quantitative Methods, and Financial Reporting & Analysis.
Try to study 8-10 hours per week to start, building up a habit of studying regularly as you go.
Months 4-5: Core Subjects
Go in-depth with equity investments, fixed income, and corporate finance.
Increase study time to 12-15 hours per week. Also, start solving practice questions.
Month 6: Review and Practice
In the first level, you need to spend at least 4 weeks for an intensive review and practice exams. Concentrate on weak points, revisit ethics material, and do full-length mock exams.
Overview of the CFA Level 2 Exam Study Schedule
Level 2 focuses more on complex financial analysis and valuation. The material is more challenging; therefore, your studying needs to be more intense, too:
Months 1-2: Conceptual Understanding
Focus on fixed income, equity investments, and financial reporting & analysis.
Shoot for 10-12 hours a week; make sure you know what everything means broadly.
Months 3-4: Intensive study focuses on derivatives, portfolio management, and alternative investments. Increase the time spent studying to 15-18 hours a week, and begin with practicing the complex calculations.
Month 5-6: Consolidation and Practice
Spend 6-8 weeks studying for the exam by practicing. Practice on different levels and review the material you have studied till now to keep your memory refreshed. As far as applying your knowledge is concerned, you should focus on case studies and item-set questions.
Overview of the CFA Level 3 Exam Study Schedule
Level 3 is the final level, and the key focus would be on portfolio management and wealth planning. The preparation methodology would need to be more application-oriented and in consideration of the essay-writing format.
Months 1-2: Core Topics in this level are portfolio management, ethics, and behavioral finance. Commence with 10-12 hours per week, learning the application of concepts.
Months 3-4: Focus on topics like wealth planning, fixed income, and equity investments and learn how to apply the theory to real-life scenarios by solving case studies. Study 15-18 hours per week. Continue practicing essay questions and build portfolios.
Month 5-6: Devote the last 6-8 weeks to intensive review and practice of essay questions. Take the full-length mock exams under timed conditions to simulate the actual exam day. Also, keep enough time to go through the key topics and revise well for your exam.
Studying for the CFA Course: What’s the Best Order?
While learning the material for the CFA exam, it is optimal to go through topics in a logical manner, with each piece of knowledge tied to or built upon the last.
- Begin with Ethics: Ethics forms a big part of the exam across all levels and, therefore, should be revisited as often as possible.
- Move to Quantitative Methods: These concepts underlie many of the other areas, so the sooner you understand them the better.
- Address Financial Reporting & Analysis: This often is considered to be the toughest subject, so you will want to devote ample time here.
- Move on to Corporate Finance, Equity, and Fixed Income: These subjects form some of the core topics of the CFA curriculum and it would be smarter to put a good amount of time into understanding them as soon as possible.
- Finish up with Derivatives, Alternative Investments, and Portfolio Management: These subjects often have more complex calculations and are best addressed after you have learned the foundational material.
Some Tips for Creating an Effective CFA Study Plan
Be Realistic: Understand your pace and schedule of study hours which you will be able to maintain regularly.
Quality over Quantity: You must understand the concepts rather than just putting in the number of hours, and leaving the topic just because the allotted time is up.
Multi-Resource: Study from the CFA Institute curriculum materials, third-party providers, and practice exams.
Incorporate Regular Reviews: Go through older material regularly to make sure it is retained.
Take Care of Yourself: Remember to balance your studying with rest, exercise, and some time to relax to avoid feeling burned out.
Make Sure You Stay on Top of Your CFA Study Schedule
Sticking to your schedule will become very crucial for your success. The CFA exams are quite demanding, and the only way you will be able to keep up with mastering the material is by studying regularly. Following is how you can utilize your time and effort effectively during this entire process:
Set Clear Goals: Divide your study plan into monthly and weekly goals. It will help you stay informed about where to reach and monitor your progress, too.
Track Your Progress: Mark regularly the topics that have been covered, and change the schedule, if needed. Use some kind of study planner or application that will make you responsible.
Be Flexible: Life happens, and sometimes you will need to change the times around. You can leave some buffer time for those times when such instances do occur.
Motivated: Keep your end goal in sight. You’ll win small victories and remember why you wanted to pursue the CFA designation in the first place.
Important to Prepare, Practice, and Perform
Prepare, Practice, and Perform – the three vital stages of preparation for the CFA exams. Each stage is critical and requires a different approach to making sure that when the actual day of the examination comes, you are prepared adequately.
CFA Study Plan: The Prepare Stage
The Prepare Stage lays the foundations, and it should be approached as such.
- Start early-several months before the date. The earlier you do this, the more time it takes for digestion.
- Understand the curriculum in detail. The CFA syllabus has a structure to it, understand that. Break down each topic into manageable pieces and set aside sufficient time for each.
- Devise a study schedule-create a detailed study plan, covering all topics and leaving ample time for review and practice exams.
- In the early stage, focus on getting the concepts right. Make sure that you remember all the key concepts without any hustle.
CFA Study Plan: The Practice Stage
At the Practice Stage, you shift from learning to applying what you learned:
Begin Practice Exams Early: Take the practice exams and questions either from a mock exam or from your study guide. This will get you accustomed to the time of the exam and the way the questions look.
Identify weak areas: Practice exams help you identify areas in which you are struggling. Those topics are what you should spend extra review time on.
Simulate exam conditions: Use full-length practice exams under timed conditions to simulate the actual exam day. This helps you learn how to use your available time wisely.
Review and refine: After every practice, review your answers, understand your mistakes, and refine your approach.
CFA Study Plan: The Perform Stage
The performance stage is about maximizing your performance on exam day. During the last few weeks before the exam, spend this period reviewing key concepts, formulas, and ethics. Avoid new learning.
Rest: Make sure you’re well-rested and healthy as the exam date nears. Your mind should be fresh when you need to perform at the top of your level.
Plan Your Exam Day: Be aware of the logistics on the day of the exam: where you need to go, what to bring with you, and what to expect. Planning reduces your stress and lets you concentrate on the exam.
Stay Calm and Confident: On the actual day of the exam, be calm and confident. Trust your preparation, and methodically answer every question.
Keep a Regular Review
Review regularly, so that you can consolidate the knowledge that you have acquired and keep it fresh in your mind. Allocate some time, at least several times each week, for going through key concepts, formulas, and topics that you have covered. This will ensure that the information goes into long-term memory, and you are much more prepared for any question that the exam throws your way.
Make Sure the Entire Material is Covered
Not covering the entire CFA curriculum is never an option. The CFA exam tests a wide range of topics, and skipping any section can hurt your chances of success. Ensure your study plan leaves no stone unturned by making a checklist of all topics to track your progress. This will ensure that you go into the exam confident and ready.
Study Ethical and Professional Standard
The section on Ethical and Professional Standards is paramount in the CFA exam, with this area alone carrying the highest weight among all topics. Devote more time to studying this area, as this may be an ace up your sleeve during the exam. Learning ethical guidelines will help you not only score big in this section but also improve your professional judgment in real life.
Last Month is Reserved for Mock Exams for the CFA
The last month before the examination should be devoted primarily to taking practice exams and reviewing. Doing complete, timed practice exams helps you become accustomed to the format of the test, use your time wisely, and identify the weak areas that remain. Take this opportunity to fine-tune your approach and enter the examination with confidence.
Treat Yourself to Something Nice
After all the hard work, it’s time to reward yourself with something nice. Be it a day off, a nice meal, or just that small thing you have been craving, celebrating your milestones will most definitely keep you motivated and positive all through your CFA journey. Remember, a good work-life balance will help prevent burnout and keep you focused.
Conclusion
CFA exam preparation is gruelling yet rewarding. You are well on your way if you follow a structured study plan that includes regular review and comprehensive coverage of the material and places great emphasis on ethical standards. The last month of heavy mock exams and reviews will help concrete your knowledge and build up your confidence. With the right mindset, discipline, and strategy, you will be able to clear the exams far more easily. So stay committed, and stay focused, and before you know it, you will be a step closer toward your goal of earning your CFA charter.
FAQs on Steps to Create a CFA Exam Study Plan
What is the hardest level of the CFA program?
The consensus among candidates is that Level 2 is the toughest because of its focus on complex analytical concepts and detailed item sets. Some candidates, however, find Level 3 to be challenging as well because it has a focus on essay-type questions and portfolio management.
Does the CFA exam require a lot of study?
Yes, the CFA exam is intensive and requires immense study hours. Candidates on average require around 300-400 hrs per level for complete preparation with curriculum and practice.
What is the study time for the CFA?
The majority of candidates need to spend around 300-400 hours studying per level. That’s about 15-20 hours per week over several months to get ready for this exam.
Do you know how many hours you should study for the CFA exam every day?
It is suggested that you study 2-3 hours each day consistently. In this way, you can go through the voluminous material at a steady pace and can also build up a strong understanding with time.
