The difference between self-realization and material illusion is to know that the temporary or illusory impositions of material energy in the shape of gross and subtle bodies are superficial coverings of the self. The coverings take place due to ignorance. Such coverings are never effective in the person of the Personality of Godhead. Knowing this convincingly is called liberation, or seeing the Absolute. This means that perfect self-realization is made possible by adoption of godly or spiritual life. Self-realization means becoming indifferent to the needs of the gross and subtle bodies and becoming serious about the activities of the self. The impetus for activities is generated from the self, but such activities become illusory due to ignorance of the real position of the self. By ignorance, self-interest is calculated in terms of the gross and subtle bodies, and therefore a whole set of activities is spoiled, life after life. When, however, one meets the self by proper culture, the activities of the self begin. Therefore a man who is engaged in the activities of the self is called jīvan-mukta, or a liberated person even in the conditional existence.
(Srimad Bhagavatam----1:3:33----purport).

When one is thus inclined to become an associate of the Supreme Lord, the Personality of Godhead, in one of the innumerable planets of the spiritual sky, especially in Goloka Vṛndāvana, one has to think always that he is different from the material energy; he has nothing to do with it, and he has to realize himself as pure spirit, Brahman, qualitatively equal with the Supreme Brahman (Parameśvara). Mahārāja Yudhiṣṭhira, after distributing his kingdom to Parīkṣit and Vajra, did not think himself Emperor of the world or head of the Kuru dynasty. This sense of freedom from material relations, as well as freedom from the material encagement of the gross and subtle encirclement, makes one free to act as the servitor of the Lord, even though one is in the material world. This stage is called the jīvan-mukta stage, or the liberated stage, even in the material world. That is the process of ending material existence. One must not only think that he is Brahman, but must act like Brahman. One who only thinks himself Brahman is an impersonalist. And one who acts like Brahman is the pure devotee.
(Srimad Bhagavatam----1:15:42----purport).

As the Lord is not affected by the modes of material nature, so a pure devotee of the Lord is also not affected by the modes of nature. That is the primary qualification for being one with the Lord. A person who is able to attain this transcendental qualification is called jīvan-mukta, or liberated, even though he is apparently in material conditions. This liberation is achieved by one who constantly engages in the transcendental loving service of the Lord.
(Srimad Bhagavatam----3:4:31----purport).

People who are suffering in this material world because they are conditioned by the material energy can easily get freedom from the clutches of matter by understanding the Sāṅkhya philosophy enunciated by Lord Kapila. By this system of philosophy, one can immediately become free, even though one is situated in this material world. That stage is called jīvan-mukti. This means that one is liberated even though one stays with his material body. That happened for Devahūti, the mother of Lord Kapila, and she therefore satisfied the Lord by offering her prayers. Anyone who understands the basic principle of Sāṅkhya philosophy is elevated in devotional service and becomes fully Kṛṣṇa conscious, or liberated, even within this material world.
(Srimad Bhagavatam----3:33:1----purport).

Śrīla Rūpa Gosvāmī, in the Bhakti-rasāmṛta-sindhu, has also confirmed this. Īhā yasya harer dāsye: regardless of where he is situated, anyone whose only aim is to serve the Supreme Lord under the direction of the spiritual master is called jīvan-mukta, or one who is liberated even with his material body. Sometimes doubts arise in the minds of neophytes about whether or not the spiritual master is liberated, and sometimes neophytes are doubtful about the bodily affairs of the spiritual master. The point of liberation, however, is not to see the bodily symptoms of the spiritual master. One has to see the spiritual symptoms of the spiritual master. Jīvan-mukta means that even though one is in the material body (there are still some material necessities, since the body is material), because one is fully situated in the service of the Lord, he should be understood to be liberated.
(Srimad Bhagavatam----3:33:10----purport).

All material changes and material progress taking place by the wonderful interaction of matter are under the superintendence of the Supreme Personality of Godhead, Kṛṣṇa. Events in the material world are not taking place blindly. If one always remains a servant of Kṛṣṇa and engages everything in His service, one is accepted as jīvan-mukta, a liberated soul, even during his lifetime within the material world. Generally liberation takes place after one gives up this body, but one who lives according to the example of Pṛthu Mahārāja is liberated even in this lifetime. In Kṛṣṇa consciousness the results of one's activities depend on the will of the Supreme Person. Indeed, in all cases the result is not dependent on one's own personal dexterity but is completely dependent on the will of the Supreme.
(Srimad Bhagavatam----4:22:51----purport).

If one engages himself in the service of the Lord through his life, wealth, words, intelligence and everything he possesses, he will always be liberated in any condition. Such a person is called a jīvan-mukta, one who is liberated during this lifetime. Devoid of Kṛṣṇa consciousness, those who engage in material activities simply become more entangled in material bondage. They have to suffer and enjoy the actions and reactions of all activity. This Kṛṣṇa consciousness movement is therefore the greatest boon to humanity because it keeps one always engaged in Kṛṣṇa's service. The devotees think of Kṛṣṇa, act for Kṛṣṇa, eat for Kṛṣṇa, sleep for Kṛṣṇa and work for Kṛṣṇa. Thus everything is engaged in the service of Kṛṣṇa. A total life in Kṛṣṇa consciousness saves one from material contamination.
(Srimad Bhagavatam----4:30:19----purport).

The words tan-mahimānam avāpa are significant in this regard. Śrīla Śrīdhara Svāmī says that mahimā means liberation in this life. We should act in such a way in this life that after giving up this body, we will become liberated from the bondage of repeated birth and death. This is called jīvan-mukti. Śrīla Vīrarāghava Ācārya states that in the Chāndogya Upaniṣad there are eight symptoms of a jīvan-mukta, a person who is already liberated even when living in this body. The first symptom of one so liberated is that he is freed from all sinful activity (apahata-pāpa). As long as one is under the clutches of māyā in the material energy, one has to engage in sinful activity. Bhagavad-gītā describes such people as duṣkṛtinaḥ, which indicates that they are always engaged in sinful activity. One who is liberated in this life does not commit any sinful activities. Sinful activity involves illicit sex, meat-eating, intoxication and gambling.
(Srimad Bhagavatam----5:4:5----purport).

Those in the material world are conditioned souls, nitya-baddha. The nitya-baddhas can become liberated by controlling the mind because the cause of conditioned life is the mind. When the mind is trained and the soul is not under the mind's control, the soul can be liberated even in this material world. When it is liberated, one is called jīvan-mukta. Ajīvan-mukta knows how he has become conditioned; therefore he tries to purify himself and return home, back to Godhead. The eternally conditioned soul is eternally conditioned because he is controlled by the mind. The conditioned state and liberated state are compared to the sleeping, unconscious state and the awakened state. Those who are sleeping and unconscious are eternally conditioned, but those who are awake understand that they are eternally part and parcel of the Supreme Personality of Godhead, Kṛṣṇa. Therefore even in this material world, they engage in Kṛṣṇa's service.
(Srimad Bhagavatam----5:11:12----purport).

"One who is not disturbed in spite of the threefold miseries, who is not elated when there is happiness, and who is free from attachment, fear and anger, is called a sage of steady mind." A devotee should not be aggrieved in an awkward position, nor should he feel extraordinarily happy in material opulence. This is the way of expert management of material life. Because a devotee knows how to manage expertly, he is called jīvan-mukta. As Rūpa Gosvāmī explains in Bhakti-rasāmṛta-sindhu:
īhā yasya harer dāsye
karmaṇā manasā girā
nikhilāsv apy avasthāsu
jīvan-muktaḥ sa ucyate
"A person acting in Kṛṣṇa consciousness (or, in other words, in the service of Kṛṣṇa) with his body, mind, intelligence and words is a liberated person even within this material world, although he may be engaged in many so-called material activities." Because of constantly engaging in devotional service, in any condition of life, a devotee is free from all material bondage.
(Srimad Bhagavatam----7:10:14----purport).

Worship of the demigods is discouraged, and worship of a Vaiṣṇava is considered exalted. No respect is given to the nondevotees. There are discussions of how one can be liberated even in this life (jīvan-mukta), Lord Śiva as a devotee, and how a bhakta and his devotional service are eternally existing. It is stated that through bhakti one can attain all success because bhakti is transcendental to the material qualities. There is a discussion of how the self is manifest through bhakti. There is also a discussion of the self's bliss, as well as how bhakti, even imperfectly executed, enables one to attain the lotus feet of the Supreme Personality of Godhead. Unmotivated devotional service is highly praised, and an explanation is given of how each devotee can achieve the platform of unmotivated service by association with other devotees.
(Sri Caitanya Caritamrta-----2:1:43----purport).

The thirteen meanings of the ātmārāma verse mentioned here are based on the following meanings for the word ātmārāma: (1) sādhaka, the neophyte performer; (2) brahma-maya, one absorbed in the thought of impersonal Brahman; (3) prāpta-brahma-laya, one who has actually attained Brahman perfection; (4) mumukṣu, one who desires liberation; (5) jīvan-mukta, one who is liberated in this life; (6) prāpta-svarūpa, one who has attained his original constitutional position; (7) nirgrantha-muni, a completely liberated saint; (8) sagarbha-yogārurukṣu, a yogī meditating upon the four-handed Viṣṇu form and desiring yogic perfection; (9) nigarbha-yogārurukṣu, one who is trying for perfection in impersonal meditation; (10) sagarbha-yogārūḍha, one who has been elevated to the platform of yogic perfection by meditating on the Viṣṇu form; (11) nigarbha-yogārūḍha, an impersonal yogī on the platform of perfection; (12) sagarbha-prāpta-siddhi, one who has attained the perfectional stage by meditating on the Viṣṇu form; (13) nigarbha-prāpta-siddhi, one who has attained perfection by practicing impersonal meditation.
(Sri Caitanya Caritamrta-----2:24:163----purport).

As confirmed in Śrīmad-Bhāgavatam (10.14.4), a person without devotional service who simply wants to know things (kevala-bodha-labdhaye) gains only dry speculative knowledge but no spiritual profit. This is confirmed in the Bhakti-sandarbha (111), wherein it is said:
jīvan-muktā api punar yānti saṁsāra-vāsanām
yady acintya-mahā-śaktau bhagavaty aparādhinaḥ
"Even though one is liberated in this life, if one offends the Supreme Personality of Godhead he falls down in the midst of material desires, of which dry speculation about spiritual realization is one."
(Sri Caitanya Caritamrta-----3:8:26----purport).

In this connection, Śrīla Rūpa Gosvāmī states in his Bhakti-rasāmṛta-sindhu that the person whose only desire is to serve the Supreme Personality of Godhead may be situated in any condition in the material world, but he is to be understood as jīvan-mukta; that is to say, he is to be considered liberated while living within the body or the material world. The conclusion, therefore, is that a person fully engaged in Kṛṣṇa consciousness is a liberated person. Such a person actually has nothing to do with his material body or the material world. Those who are not in Kṛṣṇa consciousness are called karmīs and jñānīs, and they hover on the bodily and mental platforms and thus are not liberated. This situation is called kaivalya-nirasta-yoni. But a person situated on the transcendental platform is freed from the repetition of birth and death.
(Krsna Book).