My formula for understanding life is:

Every event and situation in your life is meant to be a test of your character.

For example, both poverty and wealth are tests. A wealthy person might become arrogant and forget Hashem. A poor person might be tempted to steal and commit fraud.

When life goes smoothly, it tests one’s character, and so does a life of suffering.

~ Ramchal in Mesilas Yesharim