Though the ultimate way to be happy is through a proper relationship with Jesus Christ (Acts 2 38) there is another important component to happiness I have found.
I owe this piece of wisdom to my dear, departed grandmother who said, "Happiness is liking the people you're with", which I took to mean liking the people with whom you have to associate on a daily basis.
I have found this to be so true in my life. If I don't have a group of people, or even that one person in my life among all the malcontents, nut-jobs and loosers with whom I get that positive charge from being around, my life tends to be miserable. However, if I have that bit of intelligent conversation with someone on the street or, more importantly, with a person in my life at the time, I find that just makes my day. If someone is a great person to be around and we just click, those moments with them you remember in future become that much more precious.