Why Passing the CFA Exam Should Be Your New Year’s Resolution (And Why You Probably Won’t Regret It)
As the holidays fade and the gym fills with people who think “burpees” are a sustainable lifestyle, it’s time for the annual tradition of making New Year’s resolutions. If you’re in finance, or just enjoy the thrill of reading 600 pages on bond convexity, let me suggest a resolution that’s both ambitious and (occasionally) soul-crushing: passing the CFA exam.
Hear me out. There’s real science behind why “now” is the perfect moment to commit—and why you shouldn’t trust anyone who claims they “passed in three weeks with zero stress.” Let’s take a look at why the CFA exam should top your list this year, with a nod to Katy Milkman’s book How to Change.
The Fresh Start Effect: Because January Is the New “”
Katy Milkman’s How to Change opens with the “fresh start effect.” Translation: humans are surprisingly optimistic at arbitrary calendar milestones. New Year’s Day, birthdays, fiscal year-ends—these are our psychological reset buttons, moments when we convince ourselves that past failures (like last year’s “I’ll floss every night!”) don’t count and this time will be different.
“Fresh starts can serve as powerful motivators, helping us overcome inertia and begin pursuing our goals with renewed vigor.” —Katy Milkman, *How to Change*
So if you spent the last year avoiding the CFA curriculum like it was a salad at a steakhouse, rejoice! January is here, and you’re suddenly a person who can do hard things. Or at least, you can pretend to be for a few weeks… or months… or years.
Why the CFA Exam? (Besides Impressing LinkedIn Recruiters)
The CFA designation is the gold standard in finance. It’s respected, opens doors, and comes with the added benefit of making you sound smart at parties (assuming those parties are hosted by other finance nerds). But let’s be honest: it’s also one of the most challenging professional exams out there even if you have to explain that its different from a CPA.
How to Make Your CFA Resolution Stick (With Help From Milkman)
1. Set a Goal That’s Specific (More than just “Pass CFA Someday”)
Milkman’s research shows that vague goals are about as effective as using “hope” as a study strategy. Instead of “I want to pass the CFA eventually,” try “I will pass Level I of the CFA exam this year.” Write it down, tell a friend, tattoo it on your arm—whatever works.
2. Break Down the Challenge
The CFA curriculum is massive. Don’t try to tackle it all at once. In my own journey, splitting 300 hours over 32 weeks (about 9.5 hours per week) made it manageable. Milkman suggests breaking goals into bite-sized chunks—so you can celebrate small wins, like finally understanding what “duration” means (and why it haunts your dreams).
3. Leverage the Fresh Start (While Your Motivation Is Still Alive)
Register for the exam early, and use the New Year as your launchpad. Tell your friends and colleagues, so you have external accountability—and someone to remind you that “watching finance memes” doesn’t count as studying. Also, if you pay for the exam you have made a financial commitment and are more likely to stick to it.
4. Plan for Obstacles
Milkman advocates for “precommitment”—anticipating setbacks and planning for them. Vacations, work deadlines, existential dread: these will happen. Build flexibility into your study plan. If you fall behind, don’t panic; just ramp up your hours later. You can make it up later but procrastination is not a strategy. That’s why we start early so there’s less to do later.
5. Track Your Progress
Use a spreadsheet or study tracker. Milkman’s research shows that monitoring progress keeps you honest. Plus, there’s nothing quite like seeing a chart that says you’re 40 hours behind schedule to light a fire under you.
6. Use Zorroh
Shameless Plug.
7. Celebrate Milestones
Milkman encourages rewarding progress. Don’t wait until exam day. Every week of consistent study, every mock exam completed, every time you resist the urge to binge-watch instead of study—these are victories. Treat yourself (responsibly).
Final Thoughts: Make This Year Count (And Try Not to Hate Yourself)
The CFA exam is a marathon, not a sprint. The stories of candidates passing in a few weeks are the unicorns of finance. Most who succeed do so by embracing a disciplined, methodical approach—starting early, pacing themselves, and occasionally questioning their life choices.
As Milkman’s research shows, the New Year is a powerful time to set ambitious goals. By combining the fresh start effect with a clear plan, accountability, and a dash of dry humour, you can transform your CFA ambition from a wish into a reality.
So, as you contemplate your resolutions, ask yourself: What could passing the CFA do for your career, your confidence, and your ability to explain risk management at dinner parties? Make this the year you commit. Register early, plan your study, track your progress, and let the science of change work for you.
References:
- Milkman, K. (2021). How to Change: The Science of Getting from Where You Are to Where You Want to Be.
- “Do I Need 300 Hours to Pass the CFA Exam?”
Ready to make passing the CFA your resolution? Have questions, existential doubts, or a meme to share? Reach out—I’d love to hear from you.