50% of it is determined by birt or genetics. Circumstances such as marital status, earnings, and looks determine 10%, and the remainder comes from intentional activities or things we can do to change our happiness level.
Researchers postulate that each individual has a "set point" for happiness, which is largely determined by birth and genes. Deviations from that point tend to be short-lived.
How does money affect happiness? Once people are free from deprivation, the tie between money and happiness begins to fray. There's generally positive correlation but money yields diminishing returns.
Middle-class and affluent people are often stuck on a "hedonic treadmill" as they sacrifice personal relationships for diminishing returns.
They why do people pursue wealth? Psychologists argue that they are seeking "positional advantage." Most people are happy with less money on one condition - "everyone else is also making less."
In contrast, traits such as self-confidence and energy correlated with happiness.
What can we do to be happier?
(1) Time shift: First how many hours of deep, hard thinking do you get done each day?
(2) Work on projects you LOVE (not like): It releases happiness in your brain! People become more effective when the brain releases endorphines!
(3) Reframe expectations: An example: http://bit.ly/LouisCK10 People take technology for granted today and forget about the very recent past. Lowering expectations brings happiness. Take yourself less seriously.
(4) Create a reward system: Rewards make people happy. Try to create rewards, even small ones.
(5) Carve out clear areas of incompetence: Claim areas of incompetence! Admit it.
(6) Cultivate emotion contagion
(7) Create sticky memories: the "who" and "what" are important. Research (in the US) has also found that morning and night memories are stickier, as well as Christmas - the most memorable holiday. A few tips: "Perceived" free time is important! Social skills: Typically there are 8 close committed relationships. family, close friends, siblings, partners, etc. Dancing: makes people happy! Volunteering: People who report time and money report greater well-being! Being Part of SOmething Bigger Not money! you just need enough money to live happily. Research also found that spending money on your friends and people you care actually makes you happier.
(8) Improve sense of humor!
She also discussed the "Six Selves Model": friends, parent, partner, work, community/spirituality, and health, which are the foundations of personal happiness. Try to allocate time over these different areas. Although you can be very busy, identify "temporal sweetspots". Allocate quality attention to each spot, even if it's temporal. She further suggested listing favorite traditions to build habits.