Art Imitates Life

As I begin my first real attempt at fiction, I am realizing how much life influences my imagination. 

Is it cheating to use real world situations and to change the details and dream up new and perhaps horrifying situations? What if our worst nightmares really do come true? 

If it happens in my imaginary world, does that make the story true and reliable? I hope I can serve my characters and allow them to tell their story. Besides, I really want to find out what happens. 

Hope I don’t chicken out.