Results from the 2019 Indonesian National Socioeconomic Survey showed that the poverty rate in the Special Region of Yogyakarta was 11.44 %, higher by 2.22% than the 9.22% national average. However, the National Human Happiness Index in 2014 and 2017 showed that the residents were among the top ranks. This study aims to describe the poor empirically and the meaning of happiness for them. The argument is that the poor perceive themselves as happy for different reasons. This research applies a qualitative-narrative approach to answer two questions: ‘how is your life currently?’ and ‘how do you deal with poverty?’ to reveal the relationship between poverty and happiness. The results showed that the respondents were not happy living in poverty but were content with their lives for reasons attributable to the belief system and local culture. In the Javanese language, this attitude is called ‘nerimo’, which translates into ‘accepting the situation’. They practice this to improve their psychological well-being.