How does understanding grace impact a Christian's life?

The doctrine of grace is foundational to Reformed theology and profoundly affects a believer's life. In Ephesians 2:8, Paul declares that we are saved by grace through faith, emphasizing that this grace is not of ourselves but a gift from God. This understanding fosters humility, as believers recognize they do not contribute to their salvation but receive it entirely as an act of God’s unmerited favor. Furthermore, this awareness compels Christians to live in a manner consistent with their new identity in Christ, encouraging them to bear the fruits of the Spirit and extend grace to others as they themselves have received it.