What exactly is "being saved" referring to?
"Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father which is in heaven. " Matthew7:21
Although we are saved, we are still sinning by day and confessing by night, we are still not doing the will of our Father in heaven.
But Paul said, "For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation."
Romans10:10
So, What exactly is "being saved" referring to?
@jennifer - BAC gave a good explanation. Basically, the Bible teaches that we have been saved (past), that we are being saved (present continuous), and that we will be saved (future) when Christ returns. When we come to faith in Jesus Christ, we enter into a marriage relationship with Christ, only more like a Jewish engagement of old which was as binding as a marriage, but was not consummated until sometime later, after the groom had made a home for his new bride. Our marriage with Christ will not be consummated until he returns, so we are in an engagement period with Christ, but just as binding as a marriage relationship, i.e. when we come to faith in Jesus Christ, we put our old lives behind us, we are regenerated of the Spirit of God to new lives in Christ Jesus, and we now walk in the Spirit by faith. We die with Christ to sin, and we live with Christ to righteousness. We daily take up our cross and follow Christ, and we continually are putting sin to death in our lives by the Spirit (See: Lu. 9:23-25; Jn. 6:35-66; 10:27-30; Ac. 26:16-18; Ro. 6:1-23; 8:1-14; 2 Co. 5:15; Gal. 2:20; Eph. 2:8-10; 4:17-24; Tit. 2:11-14; 1 Pet. 2:24-25; & 1 Jn. 1:5-9). Our Lord is transforming us into the image of Christ, and he is making us holy. It is a process, which some people call "sanctification." It is the working of the Spirit of God in our lives, and not of our own flesh, yet we must cooperate with God's work of grace in our lives, i.e. we are not puppets on a string.
When John 3:16 says "whoever believes in him has eternal life," the verb is actually "believing," which is present tense, meaning we are not saved (past) and then we go to heaven when we die no matter what happens in between. We must keep on believing in Christ, and that belief entails repentance and obedience to Christ and his commands. I don't believe scripture teaches that we must live in sinless perfection, otherwise Christ would not have had to die if we could do that, but it does teach that if we say we have fellowship with God, but we walk (conduct our lives) in darkness (sin, wickedness), that we are liars and the truth is not in us (1 Jn. 1:6). Jesus said that we must lose our lives (die to sin) if we want to have eternal life (Lu. 9:23-25). Paul said that if we persist in conducting our lives according to the flesh, we will die, but if by the Spirit we put to death the deeds of the flesh, we will live (See: Ro. 8:1-14). There are plenty of scriptures which teach that we must endure to the end, and we must keep the faith, and we must be overcomers if we want to have eternal life with God (See: John 8:31-32; Romans 11:17-24; I Co 15:2; Col 1:21-23; II Tim 2:10-13; Hebrews 3:6, 14-15; 2 Pet. 1:5-11; I John 2:24-25; Rev. 2-3). Some people would call this works-based salvation, but it is not, because these are not fleshly works that we do to earn salvation, but they are works of the Spirit with which we cooperate in a love response to what Jesus Christ did in dying on the cross for our sins.