Faith alone saves, and you are right that the majority of reformed churches hold to it still. The fact that some churches on the evangelical fringe have twisted that into what has been called a Gospel of cheap (or easy) Grace does not make them the majority or cancel out the correct understanding. And we should not talk as though it does.
The grace of God brings salvation. But to come into that grace is only through faith.
But some act as if we simply have "faith alone" for salvation. It is as if they are saying when you just believe you are saved without any new birth or real change in your being. It is as if they are saying nothing happens inwardly at salvation and you do not need to abide in Christ in you and walk in the Spirit to be saved or actually be a new creation to be saved. But this is not accurate and scripture says differently.
Jesus said "Except a man be born again, he cannot see the kingdom of God"(John 3:3 KJV). And Paul said "if any man have not the Spirit of Christ, he is none of his"(Rom. 8:9 KJV). Unless Jesus Christ is in any believer their faith is vain and they are reprobate. (2 Cor 13:5 KJV). Only by having Jesus Christ actually in us are we "in the faith".
So, this grace is Christ working in us by Gods favour unmerited to us, through our faith. It is as if faith opens the door for us to allow God to work in us and give us life. He creates in us a new heart and our spirit is born again.
When Jesus said a man must believe and be baptized to be saved. I see this similar to faith and grace. The believe part is the faith, and the baptism part is the grace.
believe = faith
baptism (into Christ) = grace
"By whom also we have access by faith into this grace(Rom. 5:2 KJV)
"By grace are ye saved through faith" Eph 2:8 KJV)
"For by one Spirit are we all baptized into one body,..."(1 Cor 12"13 KJV)
"That Christ may dwell in your hearts by faith;..."(Eph 3:17 KJV)
"For as many of you as have been baptized into Christ have put on Christ."(Galatians 3:27 KJV) I am not talking about WATER baptism here. But the saving baptism into Christ at new birth, this is the grace that saves through faith and as we abide in him through faith.
"Abide in me, and I in you. As the branch cannot bear fruit of itself, except it abide in the vine; no more can ye, except ye abide in me. 5 I am the vine, ye are the branches: He that abideth in me, and I in him, the same bringeth forth much fruit: for without me ye can do nothing."(John 15:4,5 KJV)
When we believe or have faith, we are trusting, not in our own works but in God's work on the cross for us, and when we are baptized by the Spirit into Christ we are immersed INTO Jesus Christ and he in us. This is the grace part, for Paul says by faith we enter INTO this grace. Paul also said "By one Spirit are we all baptized INTO one body" (1 Cor 12:13 KJV). This immersion into the body of Christ is the new birth and where the new man is created in Christ. The God works in us to make us perfect unto every god work, working in us that which is well pleasing in His sight through Jesus Christ (Hebrews 13;20,21 KJV).
These works of God on the cross and in us are how we are saved. So when James says how "faith without works is dead". Yes, this is true, for unless God is woking in us we are dead, and it is only by Christ that we (the new man in Christ) can do all things, without Christ in us our faith alone or empty, without such work of God we are vain and empty.
It is as a man who is alive has the spirit in him if he is dead we see no spirit. So a believer without God's spirit in him is dead also. In this way, (by having God's Spirit in) us and living in the new creation we can show forth our faith. The works are not merits works of our old man or works that we do of ourself. But God working in us at the new birth and making us perfect as we abide in Him through faith. Such works flow from God in us as fruit from a tree. The tree must first be planted and growing to be alive and this life is only in Christ. This is the grace of God that bright salvation IN us and this grace is only entered into and remained in by faith.
So the by faith we enter into the grace. And by grace are ye saved and by continual faith we continue in the grace.
"persuaded them to continue in the grace of God." (Acts 13:43).
The confusion comes, because we must live by faith and by faith we overcome the world. We cannot deny the faith or cast off our faith. Yes, we must always live daily by faith and believe the gospel to continue in the grace of God. Only through our daily faith can we walk in the Spirit, for Christ dwells in our heart by faith. Then when we are in Christ and he in us we can do all things. The old man is crucified with Christ buried with Him and risen with him. This new life of ours is walking in that newness of life in Christ. This is the daily grace we live in where the divine influence of Christ light, seed word, truth and power work in us and we are given the Holy Spirit as well to empower us in this walk and guide us.
Jesus said to the disciples at one time,
Luke 8:25
And he said unto them, Where is your faith?..."
Without such faith God is not working in the heart and life by His grace. I pray that we can all say with Paul,
1 Corinthians 15:10
But by the grace of God I am what I am: and his grace which was bestowed upon me was not in vain; but I laboured more abundantly than they all: yet not I, but the grace of God which was with me."
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