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श्री भगवानुवाच प्रजहाति यदा कामान् सर्वान् पार्थ मनोगतान्। आत्मन्येवात्मना तुष्टः स्थितप्रज्ञस्तदोच्यते।।

śrī-bhagavān uvāca prajahāti yadā kāmān sarvān pārtha mano-gatān ātmany evātmanā tuṣṭaḥ sthitaprajñas tadocyate

śrī-bhagavān (the Supreme Personality of Godhead) uvāca (said) prajahāti (gives up) yadā (when) kāmān (desires) sarvān (all) pārtha (O son of Pṛthā) manaḥ-gatān (of mental concoction) ātmani (in the self) eva (certainly) ātmanā (by the self) tuṣṭaḥ (satisfied) sthita-prajñaḥ (situated in steady intelligence) tadā (at that time) ucyate (is said)

The Supreme Personality of Godhead said: O Pārtha, when a man gives up all varieties of desire for sense gratification, which arise from mental concoction, and when his mind, thus purified, finds satisfaction in the self alone, then he is said to be in pure transcendental consciousness.

Kṛṣṇa defines the internal state of the wise man. He says that a person is called ‘Sthitaprajña’ when they give up all varieties of material desire that arise from mental concoction, and when their mind finds satisfaction in the self alone. There are two parts to this: 1) Negative: Rejection of external cravings. 2) Positive: Satisfaction in internal bliss. Most people look for happiness in objects, people, or situations. The wise man, however, has found a reservoir of joy within his own soul. He is ‘ātmany eva tuṣṭaḥ’—self-satisfied. Because he is full from within, he no longer needs to exploit the outside world for pleasure. He doesn’t stop having thoughts, but he stops being driven by them. This inner fulfillment is the secret to his steadiness; nothing outside can add to or subtract from his happiness.