The happiest, most functional people are the ones who are able to create a personal narrative that integrates, explains and predicts their past, present and future. This narrative connects their existence with a cause beyond their self. These people's lives are suffused with a sense of meaning and mission, place and belonging -- they know where they've been, know where they're going, and they're filled with confidence that they will tread their path rightly.
To create this narrative, however, corners of life have to be bent, crammed, and cut off. All that is discordant to the governing narrative is suppressed, forgotten, or diminished.
One of the hallmarks of sanity is the ability to distort reality productively.