This is a subject known doctrinally as soteriology, from the Greek soter, or to save. Even Jesus' name and title refer to salvation: Lord is His position; Jesus is His mission; Christ is His promise. He is the anointed One sent by the Father to do His will, obedient unto death on a cross on our behalf.
The common man has no comprehension of what salvation means, and probably relates to a boxer being "saved by the bell." The late, renowned theologian (R. C. Sproul) was asked if he was saved: "Saved from what?" The man was taken aback and had no answer; he didn't know what our salvation is from! Actually, we are saved by God and from God (delivered from the wrath to come according to 1 Thess. 1:10). We are as bad off as can be, but not too bad to be saved! We are never good enough to be saved and cannot prepare ourselves for it; however, we are bad enough to need salvation nevertheless.
Christianity is a religion of salvation and this is pivotal. "Salvation is of the Lord," says Jonah 2:9, and this means that God does all the work and gets all the credit and glory. The other two possibilities are to be saved by a combination of our efforts and God's or to be saved by our efforts alone. Only in the scenario that has God doing everything, can we have the assurance of salvation?
The Bible proclaims the saviorhood of God; this is His purpose in dying ("...and you shall call his name Jesus, for he will save his people from their sins."). The Scriptures speak of Christ as being the only way to be saved and that there is no other Savior (cf. Acts 4:12; John 14:6; Hos. 13:4; Isa.43:11).
All three offices of Christ take part in our salvation: as Prophet, we are saved from ignorance of sin; as Priest from the guilt of sin; as King from the dominion of sin (per D. James Kennedy).
There are many aspects to look at our salvation. At the point of salvation we are saved from the penalty of sin or justified, then we are sanctified or saved from the power of sin, and in the state of glory, we will be saved from the presence of sin. Another way of looking at this is that of our position(in Christ), our condition (fellowship and sanctification), and our expectation (glorification). From the standpoint of the tenses, we are saved, we are being saved, and we shall be saved. Our outlook is given perspective so that we have a worldview: "Our past is forgiven, our present is given meaning, and our future is secured." This all began in eternity past, is realized in time, and looks forward to, and is consummated in heaven.
Our salvation is a done deal, a fait accompli, a finished work--a divine accomplishment, not a human achievement. Religion is a do-it-yourself proposition and says, "Do," but God says, "Done!" The entire Trinity took part: the Father planned and authored it, the Son secured and accomplished it, and the Holy Spirit applied it.
Only in Christianity can we have the assurance of salvation and this is not meant to be permission to live in the flesh, but the power to live in the Spirit. Assurance enhances growth and is assuredly a boon to our spiritual well-being--otherwise, we are stunted and paralyzed in our walk. Note that assurance and security can be distinguished, but not separated. They go hand in hand and without one, you cannot have the other. Assurance is not to satisfy idle curiosity, but meant to strengthen our faith, and is a sign of faith, not presumption. It is one thing to have a spiritual birth certificate of a verse that gives you faith and another to proclaim in simple faith: God said it in His Word; I believe it in my heart; that settles it in my mind! Or even: God said it; that settles it!
Salvation is not by knowledge (not even secret knowledge which is Gnosticism)--that would be intellectualism--and not by emotion--that would be emotionalism--and not by works--that would be moralism. It is not by faith plus works, not by faith plus being good, nor by faith plus law-keeping. It is by grace alone, through faith alone, in Christ alone. Principle: Don't divorce faith and faithfulness! What kind of faith is saving faith is the issue: only obedient and repentant faith will do.
There are only four possibilities for salvation to note: by works alone; by faith plus works; by faith alone bringing about good works, and by faith alone equaling salvation minus good works. The first is religion, the second is legalism, the third is correct Reformed teaching, and the last one is only antinomianism or easy-believism. [This labeling from R. C. Sproul] The formula during the Reformation was that we are saved by faith alone, but not by a faith that is alone.
Our faith is simple--so simple a child can do it-- but not simplistic; it is childlike, but not childish. It's not a matter of trying, but trusting--trust and obey! It is the work of God (John 6:28-29 answers this question: "What shall we do, to do the works of God? It is the work of God that you believe..."); because we are incurably addicted to doing something for our salvation, according to Chuck Swindoll. The Reformers called this Soli Deo Gloria, or to God alone be the glory! "HOW SHALL WE ESCAPE IF WE NEGLECT SUCH GREAT SALVATION?" (Cf. Heb. 2:3). Soli Deo Gloria!
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The order of our salvation in Reformed theology, known as the ordo salutis, is the following: regeneration, faith/repentance, justification, sanctification, glorification. NB: since believing repentance or penitent faith is a gift, it follows regeneration (cf. 2 Thess. 2:13 and 1 John 5:1). The so-called Golden Chain of Redemption is in Romans 8:29-30: Foreknowledge, predestination, calling, justification, glorification. Note that election or calling does not depend on anything we do and takes place after predestination; we do not become the elect upon believing but are elected unto salvation and election.
Cf. Heb. 3:18-19; 5:9 ("...He became the source of eternal salvation for all who obey him."); John 3:36. Therefore, antinomianism, libertinism, and hedonism are not biblical. Dietrich Bonhoeffer said it well, "Only he who is obedient believes, and only he believes who is obedient." The only true test of faith is obedience which leads to good works.