Reference group bias and hedonic adaptation significantly impact perceptions of happiness. Reference group bias leads individuals to compare themselves with those in their immediate environment, often resulting in feelings of inadequacy. As people achieve higher status or wealth, they unconsciously shift their benchmarks for success to those who are even more successful, which often diminishes their sense of accomplishment. Meanwhile, hedonic adaptation occurs as people become accustomed to their positive experiences, causing them to stop appreciating the joys of life over time. This phenomenon is evident in both material gains and emotional milestones, where initial excitement fades quickly, leading to an ongoing struggle to recognize and maintain gratitude for life's blessings. Happiness is defined as a balance of experiencing positive emotions and finding satisfaction with life as a whole, incorporating both immediate enjoyment and a sense of purpose. It is possible for these two dimensions of happiness to diverge; individuals may feel pleasure in their daily experiences but remain dissatisfied with their overall life situation, or vice versa. The ultimate goal is to cultivate a life that maximizes both these emotional and cognitive components of happiness, allowing for a fulfilling human experience that acknowledges the complexities of joy and contentment.