How do fictional authors use real life to inspire their writing?

Often authors write based on something that has happened and affected them. Some authors start from the premise 'what if.' Once I was watching a show, Knots Landing, and something one woman said to her mother gave me my idea for a short story I needed for an audio production class. The characters had been at odds with each other and had just made up. My audio short story became The Reconciliation and I got an A.
I'm sorry if this doesn't answer your question adequately.