Why is understanding law and gospel essential for Christians?

Understanding the distinction between law and gospel is crucial for Christians because it affects how we view our relationship with God. The law reveals our sin and shows us our absolute need for a Savior; it points us to Christ, who embodies grace and truth. When we grasp that the law was not given to save us but to expose our inability to fulfill it, we can appreciate the gospel that proclaims Christ's perfect obedience and atoning sacrifice for our sins. This understanding helps believers avoid the trap of self-righteousness and instead rely entirely on Christ for their justification before God. Moreover, it informs how we live out our faith, encouraging us to respond to God’s grace with a life of gratitude and obedience.