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The podcast episode discusses the concept of changing one's character traits by asking oneself what a certain type of person would do in a given situation. It highlights the importance of identifying with the behaviors and activities that result in achieving desired goals. The speaker emphasizes that having clear goals alone is not enough; it is the actions and behaviors associated with those goals that drive progress. By asking the question, 'What would this type of person do?', individuals can align their actions with the identity they want to cultivate, leading to long-lasting change.