I do this all of the time. My children's books are comprised of fictional events, as well as, tidbits of occurrences in my friends, family, and my own childhood.
I would suggest that you don't stop writing, it is easy to stop but difficult to continue. As a writer, if I am having a hard time, I often times will switch what I am writing to another subject (ex: journaling), that gets me back on track.
