Here is the understanding that I have come to after many years of trying to reconcile the Word with modern Christianity:
1. The gift of God is eternal life through Jesus Christ our Lord. We are born of the Holy Spirit when we believe in the person/work of Christ Jesus and confess Him as Lord and Savior.
This is an irrevocable gift by the Father to anyone who honors the Son. (Yes, we can give it back). In the New Birth we are born of God's Spirit and become new Spirit beings.
2. Our Soul (mind and emotions) may still be Lost . This is what we see in many Christians. Your Soul does not get saved by an act of Faith instantaneously. Our Minds must be renewed/transformed into the Mind of Christ.
The Holy Spirit and the Word work together to do this as we let Him do it. If we never let Him transform our Minds we (our Souls) essentially remain Lost for all intents and purposes. We continue to think, talk and act carnally despite the fact we are born again. We do not crucify the flesh and therefore continue to live according to the old sin nature.
3. Externally imposed Holiness (though well intentioned) is just "strange fire". The Holy Spirit and the Word will manifest the nature of God ( Fruit of the Spirit ) and the Power of God ( Gifts of the Spirit ) through the body (5-fold ministry) when the body members have transformed Minds (truly Saved Souls ).
At that point we become Supernaturally Natural . His law is written in our hearts and we echo the words of our Lord --- "Jesus saith unto them, My meat is to do the Will of him that sent me, and to finish his work." - Joh 4:34
Will believers who have lost souls go to heaven? I certainly hope so for there are precious few who seek for, much less attain the prize of the high calling of God in Christ Jesus .
The Salvation that Jesus provided for us is wholeness - not just a Spiritual new birth. He referred to it as 'abundant life'.
Without the transformation of our Minds we will never experience abundant life in the flesh.
Neither will we be particulaly effective servants. We have to see God clearly and see who we are in Christ clearly in order to be effective servants.
That Spiritual Vision requires a Transformed Mind . When our Minds are Transformed our Heart ( NewNature ) is able to Manifest as Sons of God .
We need to stop picking the fleas off of each other (they are inconsequential) and start focusing our individual attention on the "prize".
What is the 'prize'? It is the Manifestation of the fullness of God's Grace in us.
Remember, a Gift is a Gift and a Prize is a Prize .
One requires no effort, the other does.
True Holiness is a by-product of right believing.
We are to be naturally super-natural.
This happens when the Fruit of the Holy Spirit manifests in and through us.
What is necessary for the Holy Spirit Fruit to manifest? Repentance - changing our way of thinking.
How does our thinking change? By the washing of the Word .
How does the Word change our thinking? When we add Faith to it - heart felt Faith - we become transformed by the renewing of our Minds .
It is not our behaviour that pleases God , it is our Faith .
When we Believe the Word of God to the point that any other information that conflicts with it is considered a Lie , we begin to Walk by Faith in the Spirit .
And that is God's plan for each of us.
Artificial Religion (that which proceeds from man's efforts) is a stench in the nostrils of God .
The only thing that God needs for us to do is Believe Him. In so doing, the old creature ceases to exist and the new spirit creature that we are Manifests .