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So, we are saved my Grace and not by Works,

(Ephesians 2:8 "For it is by grace you have been saved, through faith--and this is not from yourselves, it is the gift of God ")

but we will be rewarded for our works.
(Revelation 22:12 "Look, I am coming soon! My reward is with me, and I will give to each person according to what they have done." )

There is the parable about the talents(Matthew 25:14-30) that talks about how those who invested their
treasure will be reward with more, but then there is another parable about workers
who started working at different times(Matthew 20:1-16) of the hour but they all received the same wage. The master gracious was kind to those who didn't even earn a full days wage and generously give them as his loving heart desired.

My understanding of reconciling the two is that, Salvation is free and received by the Grace
of God through Faith in Jesus,

but our rewards which can only be accumulated after getting saved(treasures stored in Heaven)
come from how much we abided in the love of Jesus allowing Him to do the good works(all good things
come from God, not us) in us.

So I understand the talents parable to be a references to rewards whereas the other parable
about the hours the workers who worked different times to be about salvation.

Am I correct?
It depends on who you talk to. But for me... we can't be saved by works.
But after we are saved works are required. (James 2:24; )

To me, the parable of the talents goes along with James 2. It isn't simply for rewards.
The two who used their talents got rewarded. The one who didn't use his talents didn't
just "not get a reward". He was thrown out of the masters house altogether. (Into the place
of darkness and gnashing of teeth). (Matt 25:30; ) Note: This is immediately followed by the story
of the sheep and the goats

We do get rewards for works... 1 Cor 3:11-15; According to 1 Cor 3 some of our works will burn up, and some
works will not be burned up. But even if all of our works are burned up... we can still be saved.

This creates a dilemma for some people. If Christ alone gets all the credit and all the glory, then why do
some people get rewards? It seems we will all get repaid for our works ( Matt 16:27; )

There are rewards for being persecuted and insulted - Matt 5:11-12;
There are rewards for loving your enemies - Matt 5:44-46;
There are rewards for giving to the poor (if you do it in secret) - Matt 6:1-4;
There are rewards for praying (in secret) - Matt 6:6;
There are rewards for fasting (in secret) - Matt 6:18;
There are rewards for "giving a drink to a little one" - Matt 10:41-42;
We are rewarded for watering and planting - 1 Cor 3:8;
We are rewarded for preaching the gospel - 1 Cor 9:17-18;
We are rewarded for not "throwing away our confidence" - Heb 10:35;
We are rewarded for seeking God - Heb 11:6;

As we see with the lazy servant in the parable of the talents, and also
in 2 Jn 1:8; it is possible to lose your reward.

Some of us will receive a crown of righteousness 2 Tim 4:8;
Some of us will receive a crown of life - James 1:12; Rev 2:10;
(However it is possible to lose your crown - Rev 3:11;)
Some will receive a crown of glory - 1 Pet 5:4;

It seems we can be given many rewards. (This is by no means an exhaustive list).

The parable of the workers in Matt 20 (who started at different times of the day)
Is not about rewards as much as it is about salvation.

It doesn't matter if you get saved when you are 10, 20, 40, or 80.
You are just as equally saved as anyone else.
BAC Wrote

It doesn't matter if you get saved when you are 10, 20, 40, or 80.
You are just as equally saved as anyone else.

Yes but on the other hand we all are not equally rewarded, to me that seems like a great motivation to send treasures ahead as Jesus tells us to !!
Matt 19:21; Jesus said to him, "If you wish to be complete, go and sell your possessions and give to the poor, and you will have treasure in heaven; and come, follow Me."

Luke 12:33; "Sell your possessions and give to charity; make yourselves money belts which do not wear out, an unfailing treasure in heaven, where no thief comes near nor moth destroys.

1 Tim 6:17; Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy.
1 Tim 6:18; Instruct them to do good, to be rich in good works, to be generous and ready to share,
1 Tim 6:19; storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.

Jas 5:2; Your riches have rotted and your garments have become moth-eaten.
Jas 5:3; Your gold and your silver have rusted; and their rust will be a witness against you and will consume your flesh like fire. It is in the last days that you have stored up your treasure!

Rev 3:18; I advise you to buy from Me gold refined by fire so that you may become rich, and white garments so that you may clothe yourself, and that the shame of your nakedness will not be revealed; and eye salve to anoint your eyes so that you may see.


Am I correct?

It is not a matter of being correct. What matters most is that you personally believe that Jesus is your personal savior...that he died for all of your sins, was dead and buried and rose again to live inside you and give you eternal life. Saying that, here is what I can offer:
  • The parable of the talents is basically about believers and non-believers and the Master, God.. We are all slaves of god or servants. The three servants in the parable, two servants that were believers and faithful to God; one servant was a non-believer and not faithful. In the end, the one servant failed to demonstrate belief and was cast out of God's kingdom and sent to Hell.
  • About rewards. The greatest reward is to be welcomed as a good and faithful servant and that basically comes from being a true believer and having Jesus inside you.
  • Pray, read your Bible, participate in God's kingdom now as you are lead by the Holy Spirit and not what other men tell you to do.
  • Salvation is free and received by the Grace
    of God through Faith in Jesus,
    True and correct,,,stay in the word and your faith will continue to grow.
There are many types of rewards a Christian can earn, but salvation is not one of them as Salvation (eternal life) is a free gift.

Rom 6:23.. For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord.

The greatest reward of all is "Wisdom, and understanding" that God gives to those who seek after it. Which is why the scripture says, "there is nothing you can desire that can be compared to her (Wisdom)" (Prov 3:15) This reward is received in this life, not someday in the future. Wisdom is understanding, "Wisdom rests in the heart of the man who has understanding" (Prov 14:33) Understanding of what? Of how God moves thinks, and does things, or in other words, Wisdom is God unveiling himself to man.