Live in fear? I don't think so!

Starting with Jesus and then throughout the Gospel we are taught that "fear and faith" can't live in the same body.  We are told to live in faith and to "fear not"!

So what are we to make of Peter's verses here?
 

1 Peter 1:17-20(NKJV)

And if you call on the Father, who without partiality judges according to each one’s work, conduct yourselves throughout the time of your stay here in fear; 

knowing that you were not redeemed with corruptible things, like silver or gold, from your aimless conduct received by tradition from your fathers, 

but with the precious blood of Christ, as of a lamb without blemish and without spot. 

He indeed was foreordained before the foundation of the world, but was manifest in these last times for you 

Before I finish my "fear not" point let me direct your attention to the first line.  It once again affirms the saved by grace, judged by works paradigm.  That is we are all saved by grace so we all have the option to get in to Heaven.  Our rewards in Heaven however will be determined by the amount of service (works) that we do on God's behalf. 

OK, back to my main point.  Peter says live our life in fear.  Jesus says live our life in faith.  Is Peter contradicting Jesus? 

I don't think so.  This is an example of taking the Bible as a whole and letting the Holy Spirit guide you to discernment.  Here is my take on it.

I think the difference here is that Peter could have picked a better word than fear.  It may have been an issue in the translation.  Sometimes words don't have direct translations from the original language to other languages and that may be the case here.

I think a better word would be reverence.  Conduct your stay here in reverence.  I think it maintains the spirit of the verse while taking out the negative connotations of the word fear.  That makes more sense to me anyway!  :)