This passage confirms for us that we were not saved by works, but by the grace of God. But, this verse also says we were saved for good works. Basically, this verse affirms the basic truth that regeneration really does change us. A great cross reference to this verse is 2 Corinthians 5:17 which also says that regeneration brings about all things new. So ask yourself, how did I change when I was saved? How you answer that might indicate you spiritual condition.