Essentially, the downfall on either side is when people try to separate their lives from God's power. A works-based person may become anxiety-driven as they try to attain perfection on their own. A grace-based person may become apathetic or cavalier in their relationship with God, figuring they can continue in their sinful ways and not need to change because "God forgives all."
I've always been a perfectionist. My relationship with God has been riddled with anxiety as I try so hard to be good and do good things, but never feel like I'm doing enough. I feel guilty and shameful. I feel distant from God. I wonder why God doesn't seem to care about me when I'm trying so very hard!
My pastor recently shared a very interesting cycle of faith. He defined what true grace-based faith is and what it was supposed to look like. Take a look:
("Cycle of Grace" credit to Trevor Hudson & Jerry Haas)
A healthy faith starts with "Acceptance". It starts with knowing that God loves and forgives us and accepts us through Christ. We didn't deserve it. We didn't earn it. But God freely gave it. This knowledge strengthens and sustains us in our faith. Once we gain confidence in the knowledge that God freely accepts us to be his children, we find meaning and significance. Our purpose becomes known as we learn what it means to be a child of God (or, more specifically, to be like Christ) and, in that purpose, we find a place to take action, so good works and improvement are a natural result. Our achievements, given freely, out of love for our Father, remind us once again of his love and free acceptance of us---and so the cycle continues.
A works-based faith is backwards. It begins with "Achievements." It works (or rather, doesn't work) on the basis that we need to do good things in order to gain significance in God's eyes. Once we do enough good things and find our meaning through our own good works, we attempt to gain strength from our own accomplishments. We find ourselves believing we will gain God's acceptance only if we do something impressive! When we don't find acceptance, we feel guilty and inadequate, so we try to do more good things---and so the cycle continues.
You'll notice that the backwards, works-first cycle is exhausting and self-defeating! We've already been told that "...it is by grace (we) have been saved, through faith...not by works, so that no one can boast." (Ephesians 2:8-9), but for some reason we have a difficult time actually believing that! In this world where everyone has to prove themselves and everyone has something to prove, being freely accepted just doesn't seem to compute!
Some well-meaning people once asked Jesus: "'What must we do to do the works God requires?' (and) Jesus answered, 'The work of God is this: to believe in the one he has sent.'” (John 6:28-29). That's it. The only "work" God requires us to take is to believe in Christ. After that, he expects us to hand over the reigns and let him work through us and in us.
I believe the confusion arises from the fact that the bible also says "faith without deeds is dead." (James 2:26). This is where the push comes in. This is where the apathetic grace-reliant Christians get a kick in the butt. You see, the cycle does not stop at "Sustaining Strength" or "Significance." To stop there is to stop the cycle and to stunt spiritual growth. We are not to simply bask in God's acceptance of us--to nonchalantly continue our business without any regard for what our Significance truly is in relation to that grace. Faith without deeds is dead, because the cycle has obviously stalled! If we know who we are as a result of our acceptance, we will become more like Christ... and someone who is Christlike will not pass up an opportunity to show love to others or to shut down sin in their own life!
The key difference here is that the good deeds and works are a result of a spiritual transformation. They are the result of us allowing God to reign in our life and take control. They are not the result of a personal drive for perfection. They are not attempts to gain recognition from God, rather they are God's attempts to make us like Him. They are acts of obedience to spiritual leading, not acts of personal ambition.
This is why we are called to be in close relationship with God at all times. To pray with out ceasing. To study his Word. We need to make sure we don't grind the cycle into reverse by changing our focus from loving God for His acceptance, to trying to impress God with our own actions. We also need to make sure we don't stall a healthy cycle by pausing too long to merely "bask" --to take God's acceptance for granted. We are called to understand God, love him, and grow.
"Love the Lord your God with all your heart and with all your soul and with all your mind.’This is the first and greatest commandment. And the second is like it: ‘Love your neighbor as yourself.’ All the Law and the Prophets hang on these two commandments.”
-Matthew 22:37-40
