Acharya Prashant explains that habits are a fundamental part of being alive, rooted in the very functions of the body like breathing and the heartbeat. Nature provides habits as a time-saving measure for efficiency, allowing certain actions to occur without the need for constant thought or decision-making. The problem is not the existence of habits themselves, but rather being habituated to the wrong things. He suggests that one should be fully habituated toward truth, freedom, and simplicity, where the right decision is automatic and choice-less.