We are spiritual.
"From now on, therefore, we regard no one according to the flesh. Even though we once regarded Christ according to the flesh, we regard him thus no longer. Therefore, if anyone is in Christ, he is a new creation. The old has passed away; behold, the new has come" (2 Corinthians 5:16-17 ESV).
We were predestined for adoption as his own, God has sealed us with the promised Holy Spirit until he takes possession of his own. Though we await our salvation the redemption of our bodies we regard ourselves no longer as fleshly beings but as spiritual. The Spirit is a spirit of adoption testifying we are his own children.
We have the mind of Christ.
As a new creation, spiritually, we have the mind of Christ. But we are in a body that is carnal, opposed to that spiritual, thus transformation renews the mind so what is inward comes outward, a mind like as Christ, approving of God's will as good, pleasing, and perfect.
We are a new creation in Christ.
A new creation. We were dead physically walking around under the influence of the prince of the power of the air, sons of disobedience and children of wrath. But we were made alive in Christ, raised and seated with Christ. This is who you are, a spiritual person raised and seated with Christ in the heavenlies. Amazing! You are his children, under the power of God, obedient, loved, and condemned no longer.
The old man who was carnal in nature and could not submit to the spiritual laws of God was crucified with Christ. United in his death, released from the Law and bound to Christ in a new covenant, to walk in newness of Life. As Christ died to sin in his flesh and was raised by the spirit into life we likewise are to consider ourselves dead to sin and spiritually alive to God.
We are redeemed, forgiven.
Christ redeemed us, paying the debt of our sin. A man Adam sold his inheritance, and dominion over the earth for a piece of fruit, thus all mankind were sold into debt. But a man came who could redeem mankind, he was fully man and fully God, who died on a cross paying that debt and giving life to all who receive him. The blood of his sacrifice atones for sin and testifies that our sins are forgiven and that we are reconciled to God and have peace before him.
We are known.
God is glorified in us as his children as he sees us as we are, spiritual. But we often see dimly how we are known. As we are transformed, from glory to glory looking into the face of Jesus, our identity in Christ grows stronger, we know as we are known. We know in part as children but when fullness comes we know fully. This is so important to understand as a child of God.
We are righteous.
For our sake he made him to be sin who knew no sin, so that in him we might become the righteousness of God (2 Corinthians 5:21 ESV).
Abundant grace and the gift of righteousness came through the one man, Christ Jesus. Inwardly as a new creation we are spiritual and righteous but that inward comes out as fruit as we mature. So righteousness inwardly bears fruit of righteousness. As we grow and mature we bear fruit of that inward, also bearing fruit of the new inward spiritual being as fruit of the Spirit.
Because we are justified (declared or made righteous by the blood of Jesus, by grace through redemption, and received through faith) and because we are his children we can boldly and confidently approach God's throne of grace, for by grace we have been saved.
We are sanctified.
Though we are glorified spiritually we are to glorify God in this body. Again what is inward spiritually, as a new creation, comes outwardly as we grow in grace and in the knowledge of the Son until we reach mature adulthood, the measure of the stature of the fullness of Christ, no longer children tossed to and fro. We will master sin not under the law but under grace as the power of God's spirit working in us will achieve maturity which bears the fruit of our inward change.
We are loved.
We love God, because he first loved us. God is working out all for our good to those "loved of God," called according to his purpose. To those he predestined, he calls and to those called he justifies and to those justified he glorifies, conforming to the image of his son. God eternally purposed this in Christ; for those chosen, it is our purpose. There is no greater purpose than to be filled to the fullness of God, whole, lacking in nothing, sons and daughters of God.
This is your identity, who you are in Christ.