Saints and Sinners - Martin Luther

The saints are always sinners in their own sight, and therefore always justified outwardly. But the hypocrites are always righteous in their own sight, and thus always sinners outwardly. I use the term "inwardly" to show how we are in ourselves, in our own sight, in our own estimation; and the term "outwardly" to indicate how we are before God and in his reckoning. Therefore we are righteous outwardly when we are righteous solely by the imputation of God and not of ourselves or of our own works.

-Martin Luther- Comments on Romans 4:7