How Should We Think about Good Works?

The gospel teaches us that we are saved by the grace of God, through faith, not because of our good works ("For by grace you have been saved through faith. And this is not your own doing; it is the gift of God, not a result of works, so that no one may boast." -Eph. 2:8-9). So, as those who have been saved by grace through faith (not good works), how should we now think about good works? Paul answers that question in the very next verse in Ephesians ("For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand, that we should walk in them." -Eph. 2:10).

Matthew Henry gives some good help in his commentary on this verse:

"For we are his workmanship, created in Christ Jesus unto good works, &c., v. 10. It appears that all is of grace, because all our spiritual advantages are from God. We are his workmanship; he means in respect of the new creation; not only as men, but as saints. The new man is a new creature; and God is its Creator. It is a new birth, and we are born or begotten of his will. In Christ Jesus, that is, on the account of what he has done and suffered, and by the influence and operation of his blessed Spirit. Unto good works, &c. The apostle having before ascribed this change to divine grace in exclusion of works, lest he should seem thereby to discourage good works, he here observes that though the change is to be ascribed to nothing of that nature (for we are the workmanship of God), yet God, in his new creation, has designed and prepared us for good works: Created unto good works, with a design that we should be fruitful in them. Wherever God by his grace implants good principles, they are intended to be for good works. Which God hath before ordained, that is, decreed and appointed. Or, the words may be read, To which God hath before prepared us, that is, by blessing us with the knowledge of his will, and with the assistance of his Holy Spirit; and by producing such a change in us. That we should walk in them, or glorify God by an exemplary conversation and by our perseverance in holiness."