One reason that challenge brings happiness is that it allows you to expand your self - definition. You become larger. Suddenly you can do yoga or make homemade beer or speak a decent amount of Spanish. Research shows that the more elements make up your identity, the less threatening it is when any one element is threatened.
When Prime Minister Neville Chamberlain's government fell in May 1940, the nation turned to Churchill. At last, his unique qualities were brought to bear on a supreme challenge, and with his unshakable optimism, his heroic vision, and above all, his splendid speeches, Churchill roused the spirit of the British people.
Turns out that people who try new things, go new places, learn new skills, etc. are happier. This can be tough, because novelty and challenge also bring frustration and irritation - but if you can push through that, novelty and challenge can bring enormous happiness rewards.
I'm a creature of routine, and I hate feeling incompetent, so I avoided novelty and challenge. Making an effort to push myself in that way has brought me surprising boost.
Get enough exercise and sleep: Sounds trivial, but it's not. You may have the urge to work 24/7, to skip the gym and to stay up late to get a few more things done. That's short-sighted. Exercise and sleep are critical to having the physical and mental energy necessary to meet a challenge.
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