Faith and Grace

My dad coaches football and occasionally, when I was younger and my mom was busy running errands, my dad would take us to practice and we would sit on the sidelines while the boys were working out. I remember looking at these high school boys and think, "Oh my word, they are HUGE!" (I was pretty small and always looking up to these high school students.) Watching them work out though, it was very apparent that every single one of them, no matter how naturally athletic they were or how quickly they built muscle, had a large amount of work that was required for them to 1) reach the standard for whatever position they were playing and 2) to maintain their weight, strength, flexibility, stamina, and speed.
With the football players, the help and belief and desire that they had was good. But it was not until they applied themselves and pushed their desire to become action - involving weight-lifting, running, stretching, two- and three-a-days and listening to the coaches - that they were able to become what they wanted to become (amazing football players!) or overcome anything they were struggling with.

These young men had faith, in a sense. They believed that they could be good football players and they wanted to become great football players. They 'received grace', after a fashion: they were coached continuously along the way, they had the support of their family and friends and coaches, they were always receiving help. If that was all they had (grace and faith), that would never be enough to push them to become the football players that they needed to become.
Likewise, with only faith and grace, without any works, we would not become the people that our loving Heavenly Father has prepared us to be.

God gives more knowledge and understanding to those who seek it diligently and with real intent, which is the desire and willingness to act upon the answers which we receive from the Lord, and with faith in Christ, "[manifesting] by their works" that they will continually act upon the promptings of the Spirit that they receive. (Doctrine and Covenants 20:37)

Faith is a belief in Jesus Christ that leads us to act. Actions that come from true belief in our Savior and His ability to save will be in accordance with God's commandments.
Faith requires action. James said, "What doth it profit, my brethren, though a man say he hath faith, and have not works? can faith save him?"

The answer is no.

"For by grace are ye saved through faith; and that not of yourselves: it is the gift of God." (Ephesians 2:8)
So, we are saved "by grace...through faith," not by faith.

What is 'grace' then?
"The main idea of the word is divine means of help or strength, given through the bounteous mercy and love of Jesus Christ."
The definition continues: "This grace is an enabling power that allows men and women to lay hold on eternal life and exaltation after they have expended their own best efforts...It is truly the grace of Jesus Christ that makes salvation possible." (Bible Dictionary, 'Grace' emphasis added)
We are saved by the grace of God through our faith in Christ. If someone says that they are saved by grace, they are correct after a fashion. If someone says that they are saved because of their faith they too, are correct in some ways.

Yet, without works, "faith...is dead, being alone" and Christ's grace cannot be accessed for it takes work to reach or obtain anything. The Lord has said, "...when we obtain any blessing from God, it is by obedience to that law upon which it is predicated." (Doctrine and Covenants 130:21) As with everything else that God gives to us, continual desire and effort (obedience) are required.

Works, faith and grace must all go together.
Without true faith, we will never have a desire or motivation to act.
Without grace, which both enables us and also allows us to be cleansed from sin, we will have no chance of returning to live with our Heavenly Father for "no unclean thing can dwell...in His presence." (Moses 6:57)
Without works - obedience to the commandments, following the counsel of the prophet, and seeking to know the will of the Lord through prayer - our faith is not justified  ("declared or made righteous in the sight of God" - New Oxford American Dictionary) - and we cannot access the power of the Atonement, given so graciously by our Heavenly Father through our Savior Jesus Christ. So, without works, our faith is for naught.
"Was not Abraham our father justified by works, when he had offered Isaac his son upon the altar? Seest thou how...by works was faith made perfect?...Ye see then how that by works a man is justified, and not by faith only." (James 2:17, 21, 22, 24)

When we allow our faith - our belief in Heavenly Father and Jesus Christ - to lead us to action, we will come to know for ourselves that the Lord loves us personally, individually, and perfectly. We will come to know that it is by the grace of our Savior Jesus Christ that we can obtain eternal life and that as we work and act in order to seek His will and to become all that He wants us to become, we will someday hear the words, "Well done, good and faithful servant; thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord." (Matthew 25:23)