If you search on Google for the term “money management” it gives you nearly 79 million results. A similar search on Yahoo (934 million), Alta-Vista (950 million) and Ask.com (117 million) you quickly realize that clearly money management is a consistent issue across the globe. A similar search on Amazon.com reveals over 10,000 books for this particular issue.

It can be said without doubt that money and it’s managements is an deeply important issue with numerous resources, articles, CDs, workshops etc catering to numerous markets and segments. The increasing number of money management resources and products reflects it’s necessity. The increased number of money management techniques and products reveals how many of us are under pressure with regards to our money. Each day, consciously or unconsciously we make hundreds of decisions regarding money.

Many of us struggle with it and have problems coping with the daily and monthly demands that it puts on us. Why do so many people have so much trouble managing their money? Why is it that people with above average incomes end up living just above bankruptcy? Why is it that people earning above the national averages still end up with little or nothing to show if they are laid off?

When any of us falls ill, we visit the doctor, when we need medicine we visit the pharmacist, when we need our clothes stitched we visit the tailor. When it comes to money we either don’t ask any advise, or we ask of it in the wrong place. We believe that money is not an issue to be discussed, most of us think of it like a hidden disease that we should not talk about and it will go away.

Many of us believe that the solution to the money management problems lies in getting additional jobs, working 2 or three jobs, working over time, or getting a better, higher paying job. We think of getting out of our situation by running faster and pushing our boundaries. Making it our goal to earn more and more, yet as our pay increases our situation remains the same. When we get a pay raise, we come home excited about being free since we now have more money, and then six months later we are back to the same situation; thinking of the next escape in the form of a new job, a new place or a new life.

We end up filling the void in our life by getting more things, buying stuff that we did not want, or that our neighbor / friend sold us on buying. Some people believe that the answer to money management is to consistently keep earning more and more by working harder and longer hours. There is a limit to that though – there are only so many hours in a day. Also, working all the time is great if you don’t have a family, personal aspirations, hobbies or relationships; or need sleep.

But that’s not money management either, atleast it’s not a healthy and sustainable way of managing money.

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Money management is an expense management and involves defining who you want to be, what you want to do and what things do you want to have. It involves defining your activities in terms of money spent doing them, and finding a realistic way in which to do them.

Having more money than you spend is a fool’s solution – managing your expenses to spend less than you have is the real solution. Having more money than you are able to spend is not the right attitude – spending less money that you have is the real solution.

Think about it.