Walking God's Way
The "blessed" or happy man is the one whose life is conformed to the Word of God. There is a divine moral law for the regulation of moral life. God has given a law to every creature He has made, and to every creature its own law. This law Christ Jesus reduced to two primary obligations - right affection for God, right affection for fellow man.
Everyone wants to be blessed and happy. But how is that made possible? "Blessed (happy) are those who keep His testimonies." True happiness is a result of genuine obedience to God's testimonies (His Word). This blessedness/happiness is not merely a happy-go-lucky, giddy, no-cares illusion. It is knowing that you are right with God. Being in the right relationship with God brings freedom from shame, a pure heart, a clear conscience and eternal hope.