We are not saved by grace then brought into righteousness by our works. Therefore we are buried with him by baptism into death that like as Christ was raised up from the dead by the glory of the Father, even so we also should walk in newness of life. We cannot bring about change by our own efforts. While these people may lead moral lives, there is still little inward victory. Their thoughts and behaviors still rage out of control within them.
Real victory goes far beyond behavior and performance.
Real victory is refraining from sin with a deep sense of joy, peace, gratification and thankfulness with compassion for those who are still bound by sin. Our spirit is what has become new. The Spirit is the real us. It is the part of us that is eternal, contacts God and has God's nature. Our soul is composed of our intellect and emotions.