We live in reality. Or atleast the one 'we think' we are in. There is a varying but constant distance between:
1) The true reality
2) The reality we are cognizant of
3) The reality we hope for
4) The reality that will be
Friction generates as the differences among these four definitions of reality emerge.
The largest type of internal conflicts occur I believe when the true reality (1) collides (sometimes crashes) into the reality we have knowledge of and are cognizant (2) which may drastically alter (or shatter) the reality we hope for. We may feel so secure in what we know (2), and the real danger is when we arrogantly assume that our reality (2) is true reality (1). If we don't give place in our mind for more than what we know, we can hardly improve the reality we hope for(3), and limit our personal influence on true reality (1) and the reality that will be (4).
The most soul rattling occurance of these clashes occur between number 3 and 4 realities when the reality we hope for is extinguished by reality of what must unavoidably be.
For example most people hope to be healthy and live a relatively long and happy life. This can be shattered from discovering a health ailment or terminal illness or cancer in the younger portion of life.
So this really, really is reality, really.