Fantasy is a necessary ingredient in living, it's a way of looking at life through the wrong end of a telescope, and that enables you to laugh at life's realities.
If you think only of yourself, if you forget the rights and well-being of others, or, worse still, if you exploit others, ultimately you will lose. You will have no friends who will show concern for your well-being. Moreover, if a tragedy befalls you, instead of feeling concerned, others might even secretly rejoice. By contrast, if an individual is compassionate and altruistic, and has the interests of others in mind, then irrespective of whether that person knows a lot of people, wherever that person moves, he or she will immediately make friends. And when that person faces a tragedy, there will be plenty of people who will come to help.
That which you call your soul or spirit is your conciousness, and that which you call 'free will' is your mind's freedom to think or not, the only will you have, your only freedom, the choice that controls all the choices you make and determines your life and your character.