Choosing your first actuarial exam is a pivotal decision in your journey towards becoming an actuary. Understanding the purpose of this exam and selecting the right one can set the foundation for your career. Let’s dive into the essential considerations surrounding your first exam choice. 

Purpose of Your First Actuarial Exam 

Your first actuarial exam serves two primary purposes. Firstly, it helps you gauge whether actuarial science is the right fit for you. Secondly, it makes you eligible for your first job in this field. This dual purpose emphasizes the importance of making an informed choice about which exam to take first. 

Recommended First Exams: CS1 or CM1 

In light of the above purposes, I strongly recommend that CS1 or CM1 should be your first actuarial exam. Many candidates mistakenly opt for CB1 or CB2 as their first exam, which I believe is a misstep. Here’s why: 

● Employers often do not value CB1 and CB2 as highly. 

● These exams are relatively easier and can be passed alongside your job. 

● It’s crucial to complete CS1 and CM1 quickly to avoid the challenges of studying for mathematically intense exams after you’ve started working. 

Taking these exams while still in college allows you the time and focus needed to prepare adequately. 

Choosing Between CS1 and CM1 

Now, how do you decide between CS1 and CM1? Your educational background plays a significant role in this decision. If you have a background in commerce, finance, or have studied for qualifications like chartered accountancy, FRM, or CFA, I recommend starting with CM1. Conversely, if your background is in statistics, mathematics, physics, or engineering, CS1 might be the better option for you. 

Understanding the Size of the Exams 

It’s important to note that CM1 is a much larger exam compared to CS1. If you can dedicate around 300 hours to study, which translates to about three months or more before the exam, CM1 is a suitable choice. However, if your available study time is less than that, CS1 is the way to go. 

Prerequisites for CM1 

CM1 has certain prerequisites, particularly a solid understanding of the statistical foundation related to random variables, which are covered in CS1. If you plan to jump straight into CM1, I highly recommend watching my video on random variables. This video will bolster your understanding of CM1, especially if viewed after completing the first 11 chapters of CM1, which covers financial mathematics before moving on to contingencies. 

Should You Take Two Exams Initially? 

Considering whether to take two exams at once? I suggest attempting two exams only if you have more than four months of preparation time available. If you have a background in economics or finance and feel confident, you could go for CB1 and CB2. If you have over six months to prepare, you might attempt CS1 and CM1 together as your first exams. 

Tips for Success 

Here are some tips to keep in mind as you embark on your exam journey: 

● Plan Ahead: Start preparing as early as possible. A structured study schedule can help manage your time effectively. 

● Understand the Concepts: Focus on truly understanding the material rather than just memorizing it. This will help you tackle various exam questions more confidently. 

● Practice Regularly: Use practice questions to familiarize yourself with the exam format and question types. 

Conclusion 

Choosing the right first actuarial exam is crucial for your success in the field. By considering your background, understanding the purpose of the exam, and preparing adequately, you can set a solid foundation for your actuarial career. Remember, whether you choose CS1 or CM1, the effort you invest in your studies will pay off in the long run. Embrace the journey ahead!   

Here are my demo lectures to help you start CS1 & CM1: