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The Interior life of a Christian
The interior life presupposes the state of grace, which is opposed to the state of mortal sin. Every soul is either in a state of grace or a state of mortal sin. It is either turned toward God or turned away from him. To have a true interior life it is not sufficient to be in the state of grace, like a child after Baptism or every penitent after the absolution of his sins.The interior life requires a further struggle against everything that inclines us to fall into sin, and it also involves a life of prayer to grow in love of God, neighbor and self.

Grace

The state of grace is not only the principle of a true and very holy interior life, but it is the germ of eternal life. St Thomas says, "The good of grace in one is greater than the good of nature in the whole universe." For grace is the germ of eternal life, incomparably superior to the natural life of the soul or to that of angels.

We Need to Know the Value of Grace

The value of a seed can be known only if we have some idea of what should grow from it. For example, in the order of nature, "to know the value of the seed contained in the acorn, we must have seen a fully developed oak." In the human order, to know the value of the rational soul, which still slumbers in a little child, we must know the normal possibilities of the human soul in one who has reached full development. Likewise, we cannot know the value of sanctifying grace, which is in the soul of every baptized infant and in all the just, unless we have considered, at least imperfectly, what the full development of this grace will be in the life of eternity. 
 

Jesus says, we are "spirit and life."
In the preaching of Jesus, everything is directed immediately toward eternal life. He speaks with absolute assurance not only of a future life, but of eternal life superior to the past, the present, and the future, an entirely supernatural life.

Christ tells us that the way leading to eternal life is narrow,
and that to obtain that life we must turn away from sin and order our lives by the commandments of God. He says, "Whoever hears my word and believes in the one who sent me has eternal life" (John 5:24). That is, he who believes in Jesus, the Son of God, with a living faith united to charity and the practice of the commandments, has eternal life begun.

Sanctifying grace, which is a sharing in God's own life,

has been referred to as "a graft made on a wild shrub to enable it to bear fruit." It is a divinely produced quality or perfection of the human soul that enables it to share in the very life of God. It elevates our nature to the level of the divine, giving us a participation in God's own life and orienting us to our spiritual eternal end.

Sanctifying Grace and Actual Grace- Both are Necessary

Sanctifying Grace is that grace which confers on our souls a new life. That is, a sharing in the life of God himself. This grace is called Habitual Grace because we possess this divine gift as a habit of the soul, that is, as something permanent. Sanctifying grace is lost only through a serious or mortal sin.
The Chief Effects of This Sanctifying Grace are:
-it makes us holy and pleasing to God;
-it makes us adopted children of God;
-it makes us temples of the Holy Spirit;
-it gives us a right to heaven. 

Grace is Necessary for Salvation
Sanctifying grace is necessary for salvation, because it alone enables us to attain the supernatural happiness of heaven. Anyone who gets to heaven has the gift of Sanctifying grace; that includes people of other faiths. It has not been revealed to us at what point people of other faiths receive this gift. Christ, by his death, merited sufficient grace for all to be saved.

Actual Grace
Actual grace is necessary because without it we cannot resist the power of temptation or perform actions that merit a reward in heaven. Persons in mortal sin cannot gain sanctifying grace without the help of God through actual grace.
We can resist grace because of our free will.
God does not force us to accept grace. Although God wills the salvation of all, we must cooperate freely with his grace. All of the events of our life can be seen as graces, for example: good parents, a good Christian home, and even sickness and trials, can be accepted as grace-filled moments.