Happiness is a mental or emotional state of well-being characterized by positive or pleasant emotions ranging from contentment to intense joy. Happiness as a concept seems to be readily embraced by the majority of people and appears to be more valued than the pursuit of money, moral goodness or going to heaven. Philosophers and religious thinkers often define happiness in terms of living a good life, or flourishing, rather than simply as an emotion. Happiness economics suggests that measures of public happiness should be used to supplement more traditional economic measures when evaluating the success of public policy. Happy people are healthy people. Happy people live longer and enjoy a greater quality of life. They function at a higher level, utilizing their personal strengths, skills, and abilities to contribute to their own wellbeing as well as that of others and society. Wellbeing is a contented state of being happy and healthy and prosperous. Psychological well-being refers to how people evaluate their lives. These evaluations may be in the form of cognitions or in the form of affect. The cognitive part is an information based appraisal ofone‘s life that is when a person gives conscious evaluative judgments about one‘s satisfaction with life as a whole. Most people evaluate their life as either good or bad, so they are normally able to offer judgments. People invariably experience moods and emotions which have a positive effect or a negative effect. We can define psychological well-being in terms of internal experience of the respondent and their own perception of their lives. People have a level of subjective well-being even if they do not often consciously think about it, and the psychological system offers virtually a constant evaluation of what is happening to the person.