"So we see that a person is justified by works and not by faith alone." James 2:24
First, faith is knowledge in action and must take root and grow to be a living, saving faith. We are not saved by living a good life or achieving human success, in fact, works of the flesh or done apart from the Spirit count as filthy rags in God's sight (Isaiah 64:6), au contraire, we are saved on account of our faith. Righteousness then is imputed from Christ as we are reckoned as just forensically in God's court but not made just or righteous till we reach glory in heaven and are wholly sanctified and separated from sin forever.
And we are not saved by works, any Protestant would agree with that and that we are saved by faith. It is also true that we are "saved" by faith and works! What is meant by "saved" is in question though. We are justified in men's eyes by our fruits. The battle cry of the Reformation was that we are "saved by faith alone!"
But Catholics say that the Bible never says that but that we are not saved by faith alone in James. "We are not saved by faith alone, but not by a faith that is alone" is the formula of the Reformers. That kind of faith, that stands without works, is dead faith and cannot save. True faith manifests itself in works and proves itself. Do you have anything to show for your faith? Put it into practice!
We are known by our fruits or works, not our faith; anyone can claim to have faith but we show it by our works as evidence. James 2:18 says, "I will show you my faith by my works." Or "I will show you my faith by putting it into action." God has therefore redeemed for Himself a people "zealous of good works," for which we are "foreordained" to do (cf. Eph. 2:10). God has prepared certain works for us to do as obedience to His will.
It appears to men that the faith we have is the faith we show! Remember, our eternal reward is not for our faith but in accordance with our works or deeds (Rom. 2:6; Matt. 16:27; Psalm 62:12; 2 Cor. 5:10).
We are not therefore saved by works, but not without them either! If we have no works to validate our faith, it is suspect and dubious or in question. We must turn our creeds into deeds! Or our faith is spurious! We must be examples of good works which "adorn" our doctrine.
To be authentic, we must have a faith that is growing and living in good works. "Bearing fruit in every good work and increasing in the knowledge of God." (Col. 1:10). Our faith is not a "to-do list" either, we do not do them because we must or have to but because we want to (our nature has been transformed into new creatures). True faith expresses itself!
There are only four possibilities of salvation to consider: works equals justification (religion); faith plus works equals justification (legalism); faith without works as a byproduct equals justification (antinomianism or libertinism leading to easy-believism ,cheap grace, or "no-lordship" salvation); and finally the correct one of the Reformers is that faith equals justification producing works as a byproduct or fruit. Thus the relationship between faith and works can be distinguished but not separated or divorced. They go together hand in hand!
Thus, in conclusion, works do play a role in our salvation, they prove it and make it complete and are not its substitute, and he who thinks he can live as he pleases simply because he has faith is in error and may not be saved at all. Soli Deo Gloria!