Then what do you do to be happy?

If you can't become happy only be happy what steps can someone take?

First of all intention. You can have the intention to get this area of your life handled.
Second awareness. You can observe the habits you have that create unhappiness.

What are some fundamental observations here?

One observation is that you can notice that when you don't get what you want unhappiness usually results. Is the answer to somehow manipulate the world into providing you with everything you want? Or is it to learn to want exactly what you have? One requires changing the entire world, the other requires changing yourself. You decide which is easiest.

If you have decided it is easier to manipulate the world to provide all your wants (as most people have) then your work is cut out for you.

If you have decided it is easier to just change yourself, then you must start with your beliefs. First of all we must be aware of them. Most of them are usually unconscious. Next we must realize we are not our beliefs. These two processes, being aware of them and realizing we are not them will work together to take us a long way.

Another thing that will be a big help is to be clear about what you want.
Bottom line:
1). Know who you are (which is not your beliefs, thoughts or images of yourself).
2). Want what you have and have what you want!

In other words love everyone and do what you want. It's not just that you should do what you want when you can. It's that you must do what you want as long as it doesn't harm others.

This requires great clarity. When you are clear there is no conflict. I want to go swimming but I also want to go to a film. This is conflicted unhappiness. When you are clear you go to the film or go swimming fully engaged, not wanting to be somewhere else.