"For by grace are ye saved through faith; and that not of yourselves: it is the gift of God:" (Eph. 2:8)
The basis of our Salvation is God's grace, i.e. His loving kindness and tender mercies or His good favor. The gift of God is Salvation itself. Like a diamond with many facets, so our Salvation has many facets (regeneration, adoption, reconciliation, etc.) and it is precious. The instrument whereby we receive Salvation is faith. Faith is trusting in the Lord and Savior Jesus Christ the eternal Son of God. Faith believes God's Word and causes us to turn from our own ways and sin to lay hold on the person and work of Christ. Faith rests totally on the finished work of Christ, his death, burial and resurrection. Faith appropriates to us the saving power of the glorious Gospel.