Acharya Prashant addresses the issue of identity crisis, explaining that in a world where we must choose from various available identities, the sole criterion for selection should be freedom. He states that we often wear multiple identities at once, such as being a student, a daughter, or a citizen, and it is crucial to choose the ones that afford maximum freedom. An identity is beneficial only if it facilitates learning and personal growth. If an identity confines, constrains, or prevents one from growing, it is not good. For example, if identities like 'daughter' or 'wife' are used to limit one's potential, they must be questioned, as an identity is not an ultimate end in itself. The purpose of life is growth, a journey from the ignorance we are born with towards a higher consciousness. The identities we adopt must support this inner elevation. Any identity that becomes an obstacle to this inner growth is a cage and should be discarded. To evaluate an identity, one must constantly ask if it is making them more free, clearer in mind, more compassionate, and more responsible. For instance, the identity of a 'student' is positive if it encourages learning, but it becomes detrimental if used to evade responsibility. The identities that facilitate this inner growth are beneficial, while those that hinder it must be avoided or dropped. Ultimately, the wise have taught that one should be free from all identities. However, recognizing that this is a distant goal, the speaker advises that while we are compelled to carry some identity, we must choose with great care. The moment an identity becomes an obstacle to inner growth, it should be seen as a bad omen and discarded. The wrong identities will always seek to limit you, and when they do, an alarm should go off.