This paper examines the role of income aspirations in individual happiness. Using data from a survey of Swiss residents, it finds that higher income aspirations reduce life satisfaction, even when controlling for income levels. The study shows that income aspirations increase with both individual income and the average income in one's community. The results support the idea that subjective well-being depends on the gap between income aspirations and actual income, rather than absolute income levels. The study also finds that people's aspirations are influenced by social comparisons, with higher average incomes in communities leading to higher aspirations. The findings suggest that relative income matters more than absolute income for well-being. The paper concludes that income aspirations significantly affect individual happiness and that understanding these aspirations is crucial for analyzing well-being. The study provides empirical evidence for the relative utility concept, showing that higher income aspirations reduce well-being, consistent with the idea that happiness depends on relative income. The results also highlight the importance of social comparisons and adaptation in shaping income aspirations. The study contributes to the understanding of how income and happiness are related, and it has implications for economic theory and policy.This paper examines the role of income aspirations in individual happiness. Using data from a survey of Swiss residents, it finds that higher income aspirations reduce life satisfaction, even when controlling for income levels. The study shows that income aspirations increase with both individual income and the average income in one's community. The results support the idea that subjective well-being depends on the gap between income aspirations and actual income, rather than absolute income levels. The study also finds that people's aspirations are influenced by social comparisons, with higher average incomes in communities leading to higher aspirations. The findings suggest that relative income matters more than absolute income for well-being. The paper concludes that income aspirations significantly affect individual happiness and that understanding these aspirations is crucial for analyzing well-being. The study provides empirical evidence for the relative utility concept, showing that higher income aspirations reduce well-being, consistent with the idea that happiness depends on relative income. The results also highlight the importance of social comparisons and adaptation in shaping income aspirations. The study contributes to the understanding of how income and happiness are related, and it has implications for economic theory and policy.