Habit reinforces virtue. It also reinforces vice. Good habits build you up and take you higher and higher. Bad habits tear you down and take you lower and lower. - Character formation takes place in steps: Step 1. One intellectually embraces a virtue such as honesty. Step 2. One sets up and cultivates habits in the virtue that reinforce and enhance the virtue. - one sees the merits and value of Honesty and Integrity, cultivates habits in the same, and becomes more and more entrenched in the way of Honesty and Integrity. It becomes a pronounced personality trait. - one sees the merits and value of the Way of Thought and Reflection, sets up habits in the same, becomes more and more entrenched in the Way of Thought and Reflection, and it becomes a pronounced personality trait. - one becomes intellectually convinced that the only way to survive in this hard life is the Way of Dishonesty and Deceit, sets up habits in the same, becomes more and more entrenched in this way, and it becomes a pronounced personality trait.