That truth is the Biblical watershed for all we teach. But it means nothing if we begin with a misunderstanding of grace or a faulty definition of faith.
God's grace is not a static attribute whereby He passively accepts hardened, unrepentant sinners. God does not change a persons standing before God yet leave his character untouched. Real grace is not the Christians liberty to do precisely as he chooses.
True grace according to the Scriptures teach us to "deny ungodliness and worldly desires and to live sensibly, righteously and godly in the present age" (Titus 2:12). Grace is the power of God to fulfill our new covenant duties (1 Cor 7:19) however inconsistently we obey at times. Clearly grace does not grant permission to live in the flesh; it supplies power to live in the Spirit."
John Macarthur (You Call Me LORD? pg31)