Some actuaries fly through the FAP modules in 4-6 months; others request to extend the 2-year deadline before finishing. This article discusses one tool that can help you be in the former group, so you can move on to your ASA.
The Unique Challenge of the Modules
With exams, you have a specific deadline – you know your exam date right when you sign up.
You also have a lot to lose if you don’t pass (cost of registering a second time, the opportunity cost of additional study time and a missed raise at work).
The deadline and high stakes create a lot of pressure. Despite the additional stress, the high stakes play an important role: they push you to study.
All of that changes with the modules. You have a long 2-year period to finish all 8 modules and the two assessments.
With the deadline 2 years away, it’s hard to find the motivation to read hundreds of slides about the history of the actuarial profession & ethics—especially after a long day at the office.
To get serious about finishing the modules quickly, you may need some help to push through these long readings and ambiguous exercises.
The Fix: Stakes
The one thing missing from module study schedules is stakes. There are real consequences if you don’t study for your actuarial exam by the specific exam date, but no real consequences if you don’t stick to your module study schedule.
There’s a great tool to fix this problem and synthetically create your own stakes for completing the modules: Stickk
Stickk is a tool that helps you set and achieve goals by adding accountability to the process – you create a system to pay X amount if you don’t achieve your progress goals. Here’s how it works:
- Define your goal (e.g. finish a module every 2 weeks)
- Define your stakes (how much money you will lose if you don’t achieve your goal)
- Choose where your money will go to if you fail (e.g. an “anti-charity”, a charity, or a friend/foe)
- Choose a referee to judge your success (choose a friend to verify your progress (much more effective), or do it yourself by the honor system)
The third bullet is especially unique. “Anti-charities” are organizations that you would hate to support. Whatever your stance is on gay marriage or abortion, you can select an organization that fights for the opposite belief.
When you approach your 2-week deadline and are deciding between watching Netflix or working on the module, the decision becomes very clear.
If you watch Netflix, not only would you lose $100 (or whatever you wagered), but you would be supporting an organization that you are morally opposed to.
As always, we never want to recommend tools that we don’t personally use. We don’t have any financial incentive to recommend Stickk, but we’ve found it very useful in our own lives. I recently set up a Stickk goal for posting articles, wagering $100 if I don’t hit the weekly goal. It’s amazing how easy it becomes to find time to write articles when I know what’s at stake.
Why would you risk your money for no financial upside?
It may feel uncomfortable to wager money on Stickk when there is no financial upside (the best-case scenario is that you don’t lose any money), but remember the value of achieving your goal.
If you finish the modules, you’ll be very close to getting your ASA. Aside from the sense of accomplishment, you’ll likely receive a raise at work. If you want to get really nerdy, you can calculate expected values to see if this additional benefit exceeds the expected cost of using Stickk.
Stickk works the best for people who are the most uncomfortable with losing their money – if you’re hesitant to sign up, that’s probably a good sign that you’ll stick to your goals and never have to pay a penny.
This article focused on using Stickk to add deadlines and stakes to finish the open-ended modules, but you can use this tool for achieving many personal goals. I mentioned my goal of posting articles, but you can use it for exercising, dieting, reading, or just about any habit imaginable.
Think of how easy your decision-making becomes when you have your own money at stake, especially when that money would go to an “anti-charity”. The Netflix vs. modules struggle quickly goes away.
Some people may rely on willpower to push through the modules at a quick pace. However, if you have a busy work schedule or personal life, willpower can be in short supply.
You can use a tool like Stickk to create your own high-stakes environment and remove the reliance on willpower, conserving it for better uses.
Study Smart, Pass Fast, Live Life
Mike & Roy