I think most of us tend to live in both worlds. There comes a time when we live in reality, while sometimes, we tend to live in what we call, fantasy land or fantasy world so we could spare ourselves from the hassles we get from the physical world.
On one hand, being in what we call real world is not easy. There are a lot of anguish, there are failures, wars, hatred, so on and forth. There's also happiness but we don't usually see it because we're too preoccupied looking at the negative side of life.
On the other hand, there's fantasy land or world. Sad to say, it only lies within our minds (or does it really?). This is the world that we supposedly is enjoying but we don't because we are too insecure of one another. This is the world that only gives joy and happiness. This is the world where our distant dreams are real. This is the world where no one is being left behind, no one suffers, no one is selfish.
Now, as for me, I guess I live in a physical world that caters what I have in mind. ^_^
Is that what you call, Law of Attraction at work? (Oh, that's another thing. ^_^)
Note: The quoted text above is from the movie, Sassy Girl.