"For by grace you have been saved through faith, and that not of yourselves; it is the gift of God, not of works, lest anyone should boast." (Eph. 2:8-9)

Some think that the grace of God and works are incompatible. On the contrary, salvation is both by grace and works. Suppose a particular rich uncle said to his nephew, "I will give you a million dollars if and when you graduate from college, are married, and name your first child after me." When the young man meets those conditions, will he have actually earned the million dollars? No, it was a gift. He simply received it by meeting the conditions. So it is with the grace of God.

Eph. 2:8-9 is teaching that we have not been saved by boastful works which we might devise ourselves; however, we are saved by the works which God ordained. The very next verse which follows Eph. 2:8-9 says, "For we are His workmanship, created in Christ Jesus for good works, which God prepared beforehand that we should walk in them." (Eph. 2:10)