This is justification by imputed righteousness. This affects our objective standing before God, not our inward state. This standing is brought about upon our believing in Jesus Christ. Our state, or sanctification, consists of our growth in grace and in knowledge of our Lord Jesus Christ. But do not forget that our acceptance with God is dependent upon what Christ has done for us and our faith in just that.
Faith is counted for righteousness.
Righteousness Finally, there is the righteousness imparted to us by the Holy Spirit. God has done a work for us that is the basis of our acceptance with God. And all that God does in us is a result of this. Upon his believing, the believer in Jesus Christ is indwelt and filled with the Spirit. The Holy Spirit produces His fruit of righteousness in the life of the believer-not because of any specific act or attitude or condition fulfilled toward the Holy Spirit but because of simple faith in the finished work of Jesus Christ.