Personal Income and Subjective Well-being: A Review

  title={Personal Income and Subjective Well-being: A Review},
  author={Robert A. Cummins},
  journal={Journal of Happiness Studies},
  • R. Cummins
  • Published 1 June 2000
  • Psychology
  • Journal of Happiness Studies
Conventional wisdom holds that money has little relevance to happiness. This review will demonstrate quite the opposite is true and will argue that case using the Homeostatic Theory of Subjective Well-Being (SWB). Homeostatic theory proposes that SWB is held within a narrow range determined by personality. Experience with the environment also impacts on this system but its influence is attenuated by two sets of buffers. The internal buffers comprise beliefs in perceived control, self-esteem… 

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