Okay, so, when i was a kid i always remembered my dreams more. There was this one i will always remember. I was walking through this abandoned in-door creepy carnival. think Joker’s Funhouse. And I remember touching this needle with my finger, and my finger bleeding. When I woke up, i had a sharp pain in my finger.
So my question is,
Is whats happening in real life affecting my dream,
or is my dream affecting real life?
I’d say your real life is affecting your dream. Something similar happened to me when I had pins and needles in my arm while asleep. In my dream, my arm was broken and bent and I could feel the same pins and needles feeling in it. When I woke up I found out I had slept on my arm.
I think it works somewhat similar to how sometimes sound transfers into your dreams. I had a dream where I was in a sports stadium and suddenly heard my sisters voice coming out of the speakers.
I’d have to disagree with bluehope. I think that as you feel the pain or feeling within the dream your brain will carry on that feeling for a short amount of time into waking life. Nothing to worry about though, its just in your mind 
I got that feeling in one of my favourite dreams, something was attacking me and as i stabbed it, it jabbed me in the ribs and i woke up with a really wierd feeling in my ribs.
I’d say that both the above posts are correct. Sometimes dream pain will briefly transfer to waking life until your brain completely wakes up. This happened to me when some vicious animal in a dream stabbed me in the foot with it’s tail and I woke up immediately afterwards. I still felt the pain for like 2 seconds, before it dissapeared. I’ve also experienced the transfer of WL pain to the dream world awhile ago back when I was in Track. When my legs were sore, they would also be sore in the dream, and I would have difficulty running in the dream.