I think this can be confusing. The word WORKS can make this confusing, and I would say that in todays church preaching can make it confusing.
Some can confuse this to mean works of the flesh and therefore sin management, which can detract from being saved by grace. I think the biggest lie of Satan is to say "Oh you, you sinned today, you didn't read your bible, didn't pray, do you really love God, you got it wrong, work a bit harder at not sinning and maybe God will forgive you.
If we could manage our own sin and not sin then Jesus would not have to come to atone for our sin.
We all have stuff in our life, character traits that works in our flesh. I had a severe gambling problem and its roots were very deep and God needed to heal it and he did. Truth is my focus was on this and trying to manage it, it was only when I said to God "I'm stuck I can't deal with it, I do beleive in you even though I can't manage it, I have no idea why I can't deal with it"
But during that long dark period in my life, even though I felt hypocrital when I saw a fellow believer in trouble I would come alongside, the same for a non beleiver. What I could not accept for myself I never ever felt the same for the other person.
I have always sought to be the person that Jesus has told me to be to others, do to them as you would want them to do to you, love God with all your heart and soul.
My focus for most of my Christian life has been to manage my sin, work harder to please God. Starting to realise that the Holy Spirirt works in me to reveal my sin and work in it but also works within me to be the person Jesus is asking me be.
Our works should come from grace, our sins are forgiven on account of the name of Jesus. When we truly get it then our works should produce the fruit of the Holy Spirit.