How to Prepare: Candidates Working Long Hours

Candidates working long hours will have a challenging time preparing for the exam due to limited study time. Unfortunately, there is no easy solution for helping long-hours candidates find the time to study. The best advice I can give is to be persistent and determined. The following entry contains suggestions and ideas to help long-hours candidates prepare for and pass level 1.

My number one suggestion for candidates working long hours is to begin studying early. The benefit of this, is that you will have more time to study than if you began the traditional five months before the exam. Depending on how many hours you work per week you should consider starting up to 10 months beforehand. This may sound extreme, however, a candidate working 80 hour weeks may not be able to study after work and will have to do all of his or her studying at lunch and during the weekend.

If you have the luxury of choosing your projects at work, choose projects that require you to utilize CFA level 1 related knowledge.

Consult the article called Time Savings Tips. Use as many time saving tips as possible.

Try to take off the week before the exam to study. I realize that for candidates working long hours it may be difficult to take an entire week off.

Study during your lunch break. Also, study as efficiently as possible, meaning, keep yourself from day dreaming or talking.

Always study in a quiet environment like a library. Your time is to precious to be studying in distracting locations.

Take study materials with you everywhere, so you can study if you have a 5 minute wait before a meeting or a 10 minute wait before a doctor's appointment.

I would like to get advice from long-hours candidates on how best to prepare and what they did to free up time. Send me your story, JamesUlan@gmail.com

Analyst Mail Box

Q:

Hi James,

I am currently working as a mechanical engineer and I am thinking of enrolling in the CFA Level I program in June 2008.

I am not sure if I am able to prepare sufficiently well to pass the exam, given that I do not have sufficient background in financial accounting and economics (I have read up an econs textbook though, and now I'm pretty comfortable with the concepts). I am very good in the quantitative analysis methods, and I have good backgrd in statistics.

Therefore, financial statement analysis is the topic which I am most uneasy about, since it carries a very large weightage in the exam. I would like to know how to prepare well for this topic? The CFA recommended textbook is so difficult to understand! I wonder if you have any good and relevant textbook that is easier to understand and more suitable for someone like me.

As for the other topics like corporate finance, I feel that they are more on the quantitaive side, so I'm quite comfortable with these topics. Any other suggestions or advice you have for me are also very much welcomed.

Thanks!!

Regards,
Simon

A:
Hi Simon

Similar to you, before I began studying for level 1 I had never seen any accounting or financial statement material because I studied economics during my undergraduate schooling. I recommend using the Schweser books to improve your financial statement analysis because the material is condensed, which allows you to cover more material quicker. Unfortunately, there isn't one easy way to understand financial statements and accounting. I read the accounting material two full times, and select material a third time. Shoot me an email with any more questions. And remember, its perfectly ok, if you have to read financial statement analysis three times. Take care.

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Q:
James

Great blog so far!!! I am about to start studying. I have the CFA Institute books, but was thinking about buying the Schweser notes instead. A few people, including you, have recommended them. Does Schweser update them after every test. Eg. did they update them after the June exam?

A:
I spoke with the CFA Institute and Schweser. Neither update their books mid year, which means that you should use the same books to prepare for the December 2007 exam as other candidates used for the June 2007 exam. This means that there is no new material added to December 2007 exam, after the June 2007 exam. For each year's test, the CFA Institute usually releases the books in July of the preceding year, meaning the books for the 2008 exams are likely to be released in July of 2007. And Schweser usually releases their books in October or November of 2007 for the 2008 exams.

The Importance of Taking Practice Problems

I can not express enough that taking practice problems is extremely important. By doing lots of practice problems you will be able to convert your knowledge into question answering ability, which is key to passing level 1.

One should take as many practice problems as possible, however, be sure not to over-focus your time on taking practice problem such that you forgo a thorough reading reviewing of the material.

In order to develop adequate question answering abilities I recommend you do at least the following:

• Complete each practice problem at the end of each chapter.
• Immediately following completion of practice problems review incorrect problems and problems that you had a hard time with. The best way to review problems is to read over the solution then try to answer the problem again from scratch. This helps cement the solution.
• After finishing each book, take a sample test with questions only from that book. Save your practice exams, keeping track of what questions you got wrong and had a hard time with.
• After finishing your first read of the entire body of knowledge take at least three, six hour, timed, practice tests, to adequately prepare and simulate the actual exam. Review the questions you got wrong and had a hard time with.
• My practice schedule was to take a three hour practice exam on Saturday morning, take a break, then review my exam, and do the same on Sunday. Try to this for four weekends.

Thoughts on ethics/GIPS practice questions:

• To prepare for the ethics/GIPS portion I recommend taking a disproportionately large amount of practice questions. There are lots of small and seemingly minor rules you will be tested on for ethics that are easiest learned via taking practice problems. I feel that it is more effective to spend 5 hours reading the ethics/GIPS materials and 5 hours taking practice problems than to read ethics/GIPS for 8 hours and take practice problems for 2 hours.