The Grace Scale
Do you think of God's grace as a balancing act between legalism on the right and license on the left? Often times those on the legalistic end of the spectrum are encouraged to lighten up and show a little mercy while those who are living however they please are pushed the other way, toward legalism, as if grace is in the middle. But grace is not anywhere on this spectrum.
God's grace is an expression of His heart. By working to move either toward legalism, or away from it, we make the mistake of equating God's grace as His reward for good performance. This is just another version of walking after the flesh, and that certainly isn't grace.
It is because of God's grace that we do not have to earn or maintain His acceptance. By living in His grace we can stay off of the deceptive performance scale for good.