How to Become a CFA

As a CFA charterholder and Chief Operating Officer at 365 Financial Analyst, I once sat where you are now—feeling excitement and anxiety about the CFA Level 1 exam. Many aspiring charterholders wonder how to become a CFA, but the journey begins with understanding why this exam is so challenging.

Navigating the CFA Journey

This CFA exam covers various subjects, including Quantitative Methods and Portfolio Management, which demand disciplined self-study and effective time management. Poor planning often results in failure. This difficult exam features 180 questions divided into two sessions—allotting about 90 seconds per question and demanding swift, accurate answers.

Picture this: It’s 1:00 a.m., and stacks of notes surround me; the caffeine is wearing off, and I’m trying to decode derivatives for the second time.

I just started a new job and had to be up for work in a few hours, making matters trickier. That’s when it hit me—it wasn’t just about getting the material; it was more about figuring out a plan that fit my work-study life. Learning how to become a CFA involves more than just studying; it requires balance and adaptability, with the end goal often being a substantial CFA salary.

Tips for Effective Study Strategy

Break down the material into smaller, more manageable parts. Consider the curriculum a large mountain and tackle one section at a time to explore subjects deeply.
Create a detailed study plan that includes topics, a schedule, and review sessions. Use an Excel spreadsheet to set daily and weekly goals; download our FREE study planning template from the link below!
Adhere to your schedule but remain flexible—adjust your time if you find some areas more challenging than expected.

Effective Study Methods

Active engagement is crucial In learning how to become a CFA. This includes note-taking, crafting, using flashcards, and answering practice questions.

Note-Taking: Four Main Principles

Understand the Material: Review each section multiple times before notetaking to fully grasp the information.
Identify Key Content: Recording everything is ineffective for CFA Level 1; instead, focus on essential concepts and difficult topics.
Personalize Notes: Using your own words for review helps internalize the material better than pre-written notes.
Opt for Digital Notes: Although handwriting can aid memory, digital note-taking is more efficient for managing the extensive CFA curriculum.

Flashcards

Flashcards are vital when highlighting key curriculum points, especially for CFA Levels 1 and 2.

Create Effective Flashcards:
- Use concise, clear points or simple diagrams for maximum effectiveness.
- Organize cards into categories: “I know this,” “somewhat know this,” and “don’t know this at all.”
Choosing the Right Type:
- Opt for paper flashcards during extensive prep periods to minimize distractions—despite their lack of portability.
- For time constraints, consider digital flashcards made from existing notes for quick and effective revision.
Software Recommendations:
- Anki is highly recommended for its spaced repetition feature, which improves focus on challenging concepts.

Practice Questions

Practice questions are fundamental to mastering the CFA exam content and are an essential component of how to become a CFA charterholder.

Daily Integration: Include practice questions in your daily study routine, whether you’re working with video lessons or text.
Error Reflection:
- Note any incorrect answers and reflect on the reasons.
- If confusion remains after a brief review, ensure you revisit and thoroughly understand the relevant information.

Time Allocation and Daily Study Routine

The commonly cited 300-hour benchmark for CFA exam preparation is inadequate for about 95% of candidates—making it a somewhat misleading standard.

Annual surveys on CFA Reddit indicate that successful candidates typically devote 400 to 500 hours to their studies. Given the CFA curriculum’s breadth—comparable to handling 10 to 12 college finals simultaneously—I recommend exceeding the 300-hour expectation. Investing 400 to 500 hours greatly enhances success rates, and considering the potential CFA salary increase, it reduces the likelihood of needing to retake the exam.

Choosing the Right Time to Study

Allocate six to nine months for exam preparation. The Level 1 CFA exam covers 10 broad topics divided into 19 study sessions, each requiring detailed study—ideally twice—for mastery, particularly in specific areas. Targeting one module daily equates to over six months of preparation. This timeframe enabled me to spread out my study sessions more effectively.

While total prep time is essential, consistent study habits are equally vital. Discipline is key—commit to daily study periods and schedule specific times. Adequate CFA exam preparation hinges on mastering how to become a CFA through studying and productivity.

For instance, splitting study time into two one-hour sessions is more effective and less draining than one two-hour session. Begin with one to two hours of study per day, increasing to two to three hours daily three months before the exam, and adjust to two to eight hours in the last month.

In the final two weeks, focus on taking timed, full-length mock exams. Review any missed or unclear questions after each test.

Study Materials

Even with a finance degree, mastering all CFA material is essential. Instead of dwelling on the CFA Institute’s detailed but lengthy materials, use a test prep provider for concise content that saves time. But don’t overlook the CFA’s practice questions, end-of-chapter exercises, and quizzes—they’re vital. Although I primarily used a test prep provider, I consulted the official CFA materials to understand complex topics better.