Difficulty is an under-appreciated but powerful motivational force. As outlined by identity-based motivation (IBM) theory, a social cognition theory of self, self-regulation, and goal pursuit, people prefer to act (action-readiness) and understand their experiences (procedural-readiness) in ways that fit who they are (identity-congruence). IBM also predicts that experienced identity congruence is context-sensitive-though experienced as stable anchors, people's identities are dynamically constructed in context. Contexts shape which identities come to mind, what these on-the-mind identities imply for action, and what people infer when thinking about a task, goal, or life feels hard. People can draw two inferences (termed difficulty-as-importance and difficulty-as-impossibility) when a task or goal feels hard to think about and a third (termed difficulty-as-improvement) when their life feels hard to think about. IBM predicts, and studies support, a bidirectional relationship among these three components (action-readiness, procedural-readiness, and dynamic construction). Situations shape the identities that are on the mind and feel relevant (dynamic construction) and the inferences people draw from difficulty (procedural readiness). On-the-mind and context-relevant identities shape inferences from difficulty. Inferences from difficulty affect identity and action-when applying a difficulty-as-importance lens, people feel more certain of attaining their self-relevant goals. They perform better and find engaging a "me" thing to do-"no pain, no gain". When applying a difficulty-as-impossibility lens, people find engaging a waste of their time and unlikely to yield self-benefits unless an easy means to goal attainment exists-"cut your losses". They focus on their virtuous character traits and prefer effortful means to attain self-relevant goals when applying a difficulty-as-improvement lens-"the high road". Difficulty can be a green light of importance signaling you to get going, a detour sign of impossibility signaling you to shift to something else, or angel wings pointing you to the effortful route.