Why E-Mandate?

Let’s dive into some background on this.

Work expands so as to fill the time available for its completion.

*- Parkinson's Law*

Parkinson’s Law is applicable to our income and expenses too. Our expenses expand to match our income. As our income expands, expenses go up too - also known as Lifestyle Inflation.

Lifestyle Inflation is an enemy of wealth creation and there are ways to prevent it from happening.

One such way is to limit your income. Not literally, but by tricking your mind into believing that there’s an upper limit to which you can spend. This is done by automatically letting an amount get deducted from your income, which goes into a separate account [viz., a demat account] as saving.

One might argue that you already are transferring a monthly amount as saving and why do you need automation. But even though you might be doing that, there are 2 ways to it:

Notice that there’s a very thin line between these two. Automation ensures that you are always leaning toward the first and not the second.

Further, automation also lets us overcome human shortcomings like forgetfulness or lethargy which are again detrimental to wealth creation - it’s easy forgetting to invest 1-2 months in an year right?

This kind of automated saving / forced investing, if continued for years and years in a row, has a potential to create the kind of wealth most can’t imagine.

Hence, it’s a best practice to start an automated saving mechanism and let technology take care of managing your emotions - which it does beautifully in this case.


You have to create an E-mandate in order to setup this automated saving mechanism. Note that setting up an E-mandate is a mandatory step if you want to join Moneyplication’s Premium Plan.

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How E-Mandate?

You can use different methods to create an E-mandate:

From Zerodha

From Your Bank

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