Demystify happiness

What according to you is happiness? I often wonder if people are able to decipher what is 'happiness' for them,this world would be a lot better place than what it is today -:) Though I don't claim that I know for myself what exactly makes me happy, but I am on the way to discover.

The current problems plaguing the earth are because people fail to perceive what would make them happy,rather they keep running after a mirage.On top of it we have besieged ourselves with so many artificial bindings such as religious differences,racism and hyper-materialism too name a few ,that we can't find a way out of it.

I read a very nice line " Life is too short to hold any baggage, so live it up"

What you define as happiness?