What is the balance? Jesus asked Peter, " Do you love me?..Feed my sheep." When our sanctifying Christ as Lord in our hearts turn to action, that is the balanced view. No one is righteous, so perfection is out of the question. Still, we all have talents given to us. Whatever we do out of faith in Christ, even the smallest thing, shows we really believe. Instead of fearfully burying our talent in the ground, we do something out of faith.
I always wished that passage in James did not exist. Not because it can't be balanced, but because so many use that passage as a way to coerce others. JW is a works based religion, no doubt. They do use coercion. You must " exercise " your faith or it will weaken they say. What does that mean? The WTBTS prescribed set of works, keeping track of preaching, attending all meetings, reading every publication, contributions, KH builds, you know the drill. What's not included? Taking care of the poor, widows, orphans. They do no real charity work.
We know that works alone cannot save. Works viewed by men, performed for men, cannot save you. Those works can actually blind you to what real faith is. Otherwise Jesus would not have said ," Get away from me.." to those with powerful works done in his name. Salvation is a free gift, it's not a wage earned by performing works.
This whole subject is one of the most twisted by some. Perhaps it is written about specifically to see what is in our hearts? Some will try to control and coerce, some will use it as an excuse to do nothing, some will search for a balance and display spiritual fruitage due to faith.
Don't even get me started on undeserved kindness vs. Grace. Grace is the most accurate, but does not lend itself to controlling others. Exercise faith and undeserved kindness suit the WTBTS agenda.