All of God’s elect are made Holy when they are justified. This is both an instantaneous and an on going thing. We are set apart at the instant of justification, and we continue to be set apart until either we die, or the Lord returns.
AMEN.
Here's a great little essay on this very topic...
We think this way because the covenant of works is etched on our conscience since creation. It is unnatural to think that someone else has accomplished our standing before God and it still offends our pride, even as Christians. But I believe the Scriptures affirm that the more we grow in grace, the more we despair of ourselves and recognize our need for Jesus Christ. At the time of salvation the Holy Spirit made us lose all self-confidence so we might trust in Christ alone. So I would argue that the first principle of our growth in grace is likewise, to dispair of all hope in self and, as Paul said, to have "no confidence in the flesh"... Our sanctification is a fruit of the Spirit as we lose ourselves in the wonder of Christ and His work for us. We can never separate the spiritual benefit of sanctification from Christ Himself, the Benefactor. So true Christianity is not a religion about focusing on our own spirituality but rather a focus on our union with Christ, apart from whom, the Scriptures declare, we can do nothing. The degree that we focus on our own spirituality and spiritual ability to please God is the degree that we exhaust ourselves by trying to draw from our own natural resources.... As Christians, God indeed gives us demands to obey His law, but He works through us via the gospel to sanctify us that we might love His Law. If one reads the Sermon on the Mount we recognize that the law's demands on all of us are more difficult than imagined, not less than the Old Testament. But as a result, many think that we begin in the Spirit and are perfected by the flesh, as if the Law could give us the power to sanctify ourselves. Our sanctification, rather, is no more grounded on our ability than justification. The law commands us to live a certain way, but does not give us the power to do it. The fault is not with the law but with us. But thanks be to God, this obedience that is required of us by the Law has already been rendered by Christ. Because of what Christ has accomplished, the Spirit now works in us the life that the Law was unable to accomplish... "...In his letter to the Galatians Paul asks Christians who were in danger of thinking they could add to Christ's work or make themselves acceptable by some other way, "Having begun by the Spirit, are you now being perfected by the flesh?" (Gal 3:3) No, this is folly, because what God still wants from us as Christians is a broken Spirit, one which still recognizes its own moral and spiritual inability and complete need of God's grace to move on. One that says, "have mercy on me, I am insufficient for the task." Anyone who thinks, therefore, that they can approach the Lord's table with a pure undefiled heart are really missing the point of the gospel...
Galatians 3:1-6 (The Message)
1 You crazy Galatians! Did someone put a hex on you? Have you taken leave of your senses? Something crazy has happened, for it's obvious that you no longer have the crucified Jesus in clear focus in your lives. His sacrifice on the cross was certainly set before you clearly enough. 2-4Let me put this question to you: How did your new life begin? Was it by working your heads off to please God? Or was it by responding to God's Message to you? Are you going to continue this craziness? For only crazy people would think they could complete by their own efforts what was begun by God. If you weren't smart enough or strong enough to begin it, how do you suppose you could perfect it? Did you go through this whole painful learning process for nothing? It is not yet a total loss, but it certainly will be if you keep this up!
5-6Answer this question: Does the God who lavishly provides you with his own presence, his Holy Spirit, working things in your lives you could never do for yourselves, does he do these things because of your strenuous moral striving or because you trust him to do them in you? Don't these things happen among you just as they happened with Abraham? He believed God, and that act of belief was turned into a life that was right with God.
Great article