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Life tends to provide us with challenges, no matter where on the life-sinusoid we are. Those challenges are normal and beneficial because they allow us to grow.
How you'll handle a challenge depends on the severity of the challenge and your capacity to handle it—how many mental and material resources you have. If it's too big, it will overwhelm you. In that regard, your capacity is like a cup, if challenges, represented by fluid that gets poured into it, are too big, then it overflows and makes a mess.
What's crucially important here however is that you have the power to increase the size of your cup—i.e., increase your capacity to handle life circumstances.
If you approach it with a growth mindset—which is about treating challenges as something positive because they're opportunities to learn and grow—your cup will grow with each challenge you face. As a result, you'll be able to meet increasingly bigger challenges, as a result being able to do more and more exciting stuff.
Why and how it happens is explained by errors here: P: Errors are fundamental to learning
Your goal is to treat each challenge as a blacksmith's hammer that the sword. It's in your power to hold the sword so that it get shaped with each strike or if it's gonna be destroyed. What is another analogy in which improvement or destruction depends on the angle you have?
Challenges are basically signs of where you should develop to increase the size of your cup. No matter where, however, it's always useful to work on the material as well as mental capacity simultaneously. Returning to the analogy with the sword, it doesn't matter how good your sword is, if you are afraid to use it.