How does God's grace to us impact our lives?

God's grace is the unmerited favor that He extends to us, which fundamentally changes our standing before Him. In Ephesians 2:8-9, it is stated that, 'For by grace are ye saved through faith; and that not of yourselves: it is the gift of God.' This grace leads us to salvation, creating a new identity as children of God. The awareness of such grace compels believers to live in gratitude and holiness, recognizing that our lives are no longer our own, but are lived in service to Him who loved us first.