Jihad is regularly misconstrued as war, with all its connotations of violence and bloodshed. However, in the Islamic context, and in the literal sense, the word jihad simply means a struggle—doing one’s utmost to further a worthy cause. This is an entirely peaceful struggle, with no overtones even of aggression. The actual Arabic equivalent of war is qital, and even this is meant in a defensive sense.
According to Islamic teachings, jihad bin nafs means to make the maximum effort to keep control over negative feelings in one’s self, for instance, arrogance, jealousy, greed, revenge, anger, etc. The psychological efforts to lead such a life of restraint are what jihad bin nafs is about. In social life, it happens time and again that all sorts of base, negative feelings well up within a man, causing him to lead his life succumbing to desires and temptations. The internal effort made in such a situation to overcome the temptations of the self and to continue to lead a life guided by principles is the truly Islamic jihad bin nafs.
According to the Hadith, a believer is one who wages jihad with himself in the path of obedience to God. That is, at moments when the self (nafs), lured by some temptation, desires to deviate from the path of God, he keeps control over it and remains unswervingly on the divine path. This is his jihad—a permanent feature of the life of a believer, continuing day and night, and ending only with death.
Source: Principles of Islam