Health/Happiness
Health
Basically, you won't lose your health unless you become injured, as you cannot die in this game (as of this version), you don't have to worry to much about health. Some causes for losing health include: Dropbear attacks (see animals), eating too many chilies at once, injuring yourself at the furnace, and drowning (??). You can heal by simply eating food (except for chilies :) ).
Happiness
Your happiness depends on three factors: Hunger, Energy, and Environment.
Hunger: You haven't eaten in a while and you're starving! Eat something! (see planting)
Energy: You can lose energy throughout the game by playing. To get your energy back up, sleep! (see meditating/sleeping)
Environment: This one is a bit tricky for beginners. Your environment bar may drop from: snowing outside and you are freezing, it's too dark and you need light, and some others. You can get your enviroment bar up easily by meditating, or getting clothes and light depending on the problem!
Hunger: You haven't eaten in a while and you're starving! Eat something! (see planting)
Energy: You can lose energy throughout the game by playing. To get your energy back up, sleep! (see meditating/sleeping)
Environment: This one is a bit tricky for beginners. Your environment bar may drop from: snowing outside and you are freezing, it's too dark and you need light, and some others. You can get your enviroment bar up easily by meditating, or getting clothes and light depending on the problem!