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This is the primary way Positive Psychology researchers have defined and measured people's happiness and well-being.
It's defined as your evaluations of your own life and your moods and emotions (that's why it's labeled as "subjective").
It consists of 3 parts: positive affect, negative affect, and life satisfaction.
Positive affect and negative affect are basically your emotions and moods, and life satisfaction refers to the evaluation of your life as a whole (how satisfied you are with your life, what you would change etc).
Tracking your own subjective well-being can be very powerful if you keep alongside a journal of your life's events.
Keep it up for some time and you will see trends emerge. You'll also be able to adjust your activities in order to maximize positive affect and life satisfaction and minimize negative affect.
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