What does it mean to be saved by grace?

TL;DR:

Salvation is God’s gift of undeserved grace, not something we earn. It frees us from sin and empowers us to live transformed lives.

Grace is undeserved and unmerited favor from God. It enables us to be saved and have eternal life in Jesus Christ. We all have failures and shortcomings, and no one can truly say that they have lived such a life that would cause them to deserve God's unmerited favor. Being saved by grace means receiving God’s undeserved favor and mercy rather than relying on our own efforts or worthiness. This grace is fully given through Jesus’ sacrifice for all who trust in Him for the forgiveness of sins. Grace does not end once we are saved; we need grace as we continue to grow and walk with Him. Grace also does not permit us to sin and live however we want, knowing God will forgive us. Rather, grace gives us the power to live transformed lives in gratitude and obedience. Salvation by grace assures us that we are accepted, forgiven, and sustained entirely by God’s love.

from the old testament

Several key passages in the Old Testament foreshadow what it means to be saved by grace. Abraham “believed the Lord, and he counted it to him as righteousness” (Genesis 15:6). This shows salvation comes by faith, not works.
Israel was delivered from slavery in Egypt by God’s power and mercy, not their own strength—an image of God’s saving grace (Exodus 12–13).
Despite repeated rebellion, God revealed Himself as “merciful and gracious,” showing that salvation rests on His character and grace, not human merit (Exodus 34:6–7; Psalm 103:8–12).

from the new testament

God's grace is totally unmerited. None of us deserve it, because we are all sinners (Romans 3:10-12, 23).
God’s grace is not based on anything we could do: "But if it is by grace, it is no longer on the basis of works; otherwise grace would no longer be grace" (Romans 11:6). Neither does a mix of works and grace save us. God's grace is all or nothing, covering our sins one hundred percent.
Paul asserts this fact plainly in Ephesians 2:8-9: “For by grace you have been saved through faith. And this is not your own doing; it is the gift of God, not a result of works, so that no one may boast.”.
God sent His Son Jesus to die as the payment for our sins before we ever acknowledged Him: "For while we were still weak, at the right time Christ died for the ungodly. For one will scarcely die for a righteous person—though perhaps for a good person one would dare even to die—but God shows his love for us in that while we were still sinners, Christ died for us" (Romans 5:6-8).
Jesus’ perfect sacrifice made the way for us to receive God's grace, bringing with it eternal life, righteousness, and freedom from the sins and bondages of our fleshly nature (2 Corinthians 5:21).
In the parable of the prodigal son (Luke 15:11-32), Jesus illustrates God’s grace in action. A son demands his inheritance, wastes it on reckless living (Luke 15:13), and ends up starving among pigs (Luke 15:15–16). In desperation, he decides to return home and ask to be a servant (Luke 15:18–19). Instead, his father runs to him with compassion, restores him as a son, and celebrates his return (Luke 15:20–24). This story shows God’s joy in extending grace: forgiving and welcoming back the lost (Luke 15:32).
All people have rebelled and thought that our ways would be better than God’s. When we realize that they are not, we can turn to God and He accepts us joyfully and willingly as His children (John 1:12-13; 3:16-18).

implications for today

We are saved by grace, and we live by grace. Some people think that once they have been saved by the grace of God it means that they can sin as much as they want, because they are "covered" by God's grace. It is quite the contrary. God's grace is not an excuse for us to sin. Rather, it is God's grace that saves us and it is God's grace that trains and enables us to live righteous lives (Titus 2:11-14).

Others think that after being saved by grace we must do good works to maintain our salvation. But, again, it is quite the contrary. We are maintained by God's grace, not our own efforts. Good works do result from salvation, but they are the fruit of God's work in us (Galatians 5:22-24). We will still fail as believers, but God is faithful to forgive us (1 John 1:9). We can trust that we are justified by His grace and eternally secure in it (John 6:39–40).

If we were left on our own, we would continue sinning and running from God, but He draws us to Himself (John 6:44). When we put our faith in Christ and His redemptive crucifixion for our sins, God justifies us with His grace and credits our faith as righteousness (Romans 4:5). God justifies us when we don't deserve it. Thank God for His never-ending grace toward us.

understand

Salvation is God’s free gift of grace, not something we earn.
Grace saves us from sin and sustains us as we grow in faith.
Grace empowers us to live transformed lives in gratitude and obedience.

reflect

How does knowing you are saved by grace change the way you view your failures and shortcomings?
How do you sometimes find yourself trying to earn God’s favor instead of resting in His grace?
How does God’s grace motivate you to live a life of gratitude and obedience?

engage

What are some common misconceptions people have about God’s grace, and how can we address them with truth?
What is the role and responsibility of our actions in light of God’s grace?
How can we as believers reflect God’s grace to others in our relationships and communities?