How do we know who is actually saved?

The true test is this: Does the person have Jesus' life, death, resurrection, righteousness and ascension credited to him? It is the wrong test to ask whether there is evidence of a godly life in a person. Good acts might well flow from a born-again, changed heart and soul. But we must always put the emphasis on what Jesus has done and not on what the person has—or has not—done. The test for salvation is strictly: 'Has the person received Jesus' package of salvation?'