We talk about needing a balanced diet and a good balance between work life and home life. This is also true in our spiritual life. On the one hand we don't want to be in constant fear of disobeying God, but rather live in the assurance of God's forgiveness. On the other hand, we don't want to overplay the grace 'card' and live in wanton disregard of God and His Word.
In this passage, Chris explains a crucial Christian life balance - that between grace and godliness.