Salvation, as you define it above, (and I agree) is about being saved from our sinful life. There is the initial new birth, and then there is the ongoing walk of faith as we live for God doing good works instead of living in the misery of sin and slavery to the Devil. Ultimately heaven will be the final phase of salvation. But in all of these God is always the starting point: the author and the finisher of our faith.
We were not saved by works, are not being saved by good works, and will not ever be saved by good works: but living in victory above sin necessarily will involve living a life of good works. It is not disconnected from faith: but is integral to and intertwined with it.
I believe God forgives sin for the believer immediately when the sin is committed. Why? Because the believer is trusting in the finished blood atonement of Jesus Christ which is 100% full payment for sin. He never writes the sin down on our record: It is forgiven!
I grew up thinking that when I sin God writes it down in heaven to damn me, but when I ask for forgiveness then he takes that sin off my record. Of course, this resulted in a horrific battle with assurance.[/QUOTE
The way that I understand it is that those that Christ died for on the cross are forgiven for every sin that they will ever commit. Jesus paid their price in full, as far as their eternal inheritance is concerned, and every one of those he died for will live eternally in heaven with him. God will, by his grace, sometime in their lives, give them a new heart and mind, along with the indwelling of the Holy Spirit, resulting in being born again with a spiritual life.
Paul tells us, although we are born again, we still have a battle within us of the Spirit against our fleshly nature that we inherited from Adam. We do, at times, lose the battle by the desires of our fleshly nature and commit sinful acts. God chastens us, and pricks our new heart to repent, and by his forgiveness of that sin, he delivers (saves us in a timely sense) from suffering the effects of that sin, by reinstating us in a fellowship with him.
During our disobedience, we never lose our inheritance of an eternal life with him, due to the fact that after Christ died for the sins of those that his Father gave him, God looks upon them as holy and without blame.
The doctrine that Jesus taught was, by the majority, of his born again children, confusing, and hard to understand, and remains so, even unto this day and time. John 6:60, Many therefore of his disciples, when they heard this, said, this is an hard saying, who can hear it?