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To obtain the CFP designation, candidates must pass a national exam, as well as meet education and work experience criteria.iStockPhoto / Getty Images

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BY JASON WATT, CD, CEO AND INSTRUCTOR, BUSINESS CAREER COLLEGEsupplied

For the past 13 years, I have been delivering financial planning and insurance licensing education to adult learners. Over this time, I have gained insights into exam writing, and I can’t help but notice the similarities between preparing for an exam and planning for your financial future.

A major challenge that many exam writers face is it can be extremely intimidating – especially if it’s been a long time since you last wrote an exam. Similarly, the prospect of building a financial plan can be highly intimidating if you’ve never met with a professional financial planner, or if it’s been many years since your last meeting.

This leads to another challenge – the consequences of failure. For those seeking a licence to operate a business, failing an exam can delay their ability to earn an income. That creates significant pressure to pass. When planning for your future, there is similar pressure to get it right, since the prospect of failing to meet your goals can be scary. When the stakes are so high, we tend to feel stress. While a small amount of stress is useful, too much stress is a serious impediment.

What can we learn from exam writing when it comes to planning for our financial future?

The most important advice I can offer to any exam writer, preparing for any exam, is to study regularly in small increments. Put in 30-60 minutes of study per day. Regular study, rather than cramming, will help you avoid the stress that procrastination creates.

The same applies to financial planning – it can’t be rushed. First, you need to take time to reflect on your goals and priorities. A professional financial planner can help you build a plan for reaching those goals. Once you’ve established a plan, don’t expect to implement it in one day; you’ll need to tackle it one piece at a time, while adjusting the plan over time as your circumstances change. The longer you wait to get started, the more daunting it can seem. By starting early and giving yourself plenty of time to get on track towards your aspirations, you can avoid some of that stress.

When preparing for both an exam and your future, you need a plan, and it’s not good enough to carry a plan in your head. If it’s not written down, you’re far less likely to stick to it.

Consider Mike Tyson’s famous quote: “Everybody has a plan until they get punched in the mouth.” Running into a difficult exam question or encountering a financial setback is the mental equivalent of getting punched in the mouth. You need to have a plan in place for when it happens. As with most other things in life, planning and preparation are key to success.


Produced by Randall Anthony Communications. The Globe’s Editorial Department was not involved in its creation.

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