He had been battling stage 4 esophageal cancer.
Money's family said in a statement to Fox News: “The Money Family regrets to announce that Eddie passed away peacefully early this morning. It is with heavy hearts that we say goodbye to our loving husband and father. We cannot imagine our world without him. We are grateful that he will live on forever through his music.”
Money, whose real name was Edward Mahoney, made his stunning cancer announcement just last month in a video from his AXS TV reality series called "Real Money."
In the video, Money said he discovered he had cancer after what he thought was a routine checkup. The rock legend learned that the disease had spread to his liver and lymph nodes.
“What I don’t want to do is I don’t want to keep the fact that I have cancer from everybody,” Money said. “It’s not honest. I want to be honest with everybody. I want people to know that cancer [treatment] has come a long way and not everybody dies from cancer like they did in the '50s and '60s.
"Am I going to live a long time? Who knows? It’s in God’s hands.”
Money admitted the news hit him "really, really hard."
The rocker had numerous health problems recently, including heart valve surgery earlier this year and pneumonia following the procedure, which led to his cancellation of a planned summer tour.
His career spanned more than three decades and 12 studio albums. He was born in Brooklyn, N.Y., raised in Plainedge, Long Island, and then moved to California, where he signed with Columbia Records.
In 1987, he received a best rock vocal Grammy nomination for "Take Me Home Tonight," which featured a cameo by Ronnie Spector.
Money is survived by his wife of more than 30 years, Laurie, and five children: Zachary, Jessica, Joseph, Julian, and Desmond.
"Eddie was a true American original and a rock legend through and through,” said Mark Cuban, Founder of AXS TV. “His enduring hits have been the soundtrack for generations of fans, and his one-of-a-kind sense of humor endeared him instantly to everyone he met. We have sincerely enjoyed working with him and his entire talented family on his reality show 'Real Money', and we extend our deepest condolences to his wife, Laurie; their children Zach, Jesse, Joe, Dez and Julian; and his many friends during this difficult time."
Bon Jovi guitarist Richie Sambora tweeted "God Bless Eddie Money," while Debbie Gibson called him a "true legend."
Comedian Kevin James posted on his Instagram account a picture of Money when he appeared on his TV series "King of Queens," and wrote, "Gonna miss you, pal. May God grant you peace. Thank you for your incredible talent and kind heart! You and your family remain in my prayers."
A representative for AXS TV said the final five episodes of his series will air on Thursdays. The channel will also air a tribute to Money on Sunday, including a concert and an interview with Dan Rather on his show "The Big Interview."
The Associated Press contributed to this report.