As much as I advocate for people to stay away from the ‘Hollywood’ version of wealth, I think Gandalf gets it right in this video clip.

I get a lot of flack about using the words wealth and wealthy. I understand that when you hear that word you don’t think I am talking to you. These words bring to mind far off places, people on TV, and luxury items with large price tags. But like Gandalf says, that is not what I have found. I have found that wealth and wealthy living is about the small things; everyday deeds of ordinary folk; simple acts of kindness and love.

Let’s break it down Gandalf style:

What I have found:

I have found that wealth and wealthy living is an individualized expression. Therefore, wealthy living is available to each individual person. My expression of wealth is going to be completely different from your expression of wealth. I have no domain over you or your property, and you have none over me and my property. True wealth comes when individuals understand what they value, come together freely to collaborate, and exchange their goods and services in mutually beneficial transactions. You derive power from deciding for yourself what you value and exercising your ability to choose for yourself based on those values.

Wealth and wealthy living is about the small things:

The small things are important for two reasons.

First, in a budget the small things can make or break your financial goals. Has this ever happened to you? You start the day with $20 in your pocket, and by the end of the day you have $1.76 left, but you aren’t really sure what you purchased. When spending, the small things can eat away at your money.

Here is another example: Let’s say you like to drink iced tea (I am going to use iced tea because everyone picks on the coffee places), and you stop every day during the week to get an iced tea. The tea costs $2—a couple of bucks, no big deal, right?

That is $10 per week ($2 * 5 = $10).

That is $40 per month ($10 * 4 = $40).

That is $480 per year ($40 * 12 = $480).

That is $4,800 over ten years ($480 * 10 = $4,800).

If you where to invest $2 a day or $480 a year at 8%, it would be worth $7,500 in ten years; Twenty years: $24,000; Thirty years: $59,000; Forty years: $134,000; Fifty years: $297,000. That’s almost $300,000 for a $2-a-day iced tea.When it comes to your money, the small things do matter.

The small things that we do every day make up the bigger picture of where we will end up. This is the second reason that the small things matter. In a way this is the yin to the yang (the first reason—spending money; the second reason—making decisions). Every day you make hundreds, if not thousands, of little decisions. Each of these little decisions creates some kind of outcome. If you understand what you value—your individualized expression of wealth—you will make decisions that propel you towards your goals. You will create what you want.

For example, let’s say you want a promotion at work. One of the little things you can do is get out of bed when the alarm goes off. Another little thing would be to go to bed at a reasonable hour. Another little thing would be to get yourself organized the night before so you arrive at work on time and ready to work. Another little thing would be to… well, I think you can see how the little things start to connect.

Everyday deeds of ordinary folk:

We are the ordinary folk. You and I! But remember that ordinary folk will manage $5,000,000 or more over their lifetime. That means you will manage $5,000,000 or more over your lifetime!

You will create your individualized expression of wealth and wealthy living out of your $5,000,000.

Your everyday deeds—your beliefs, skills, values, and integrity—will shape and determine what you create with your $5,000,000.

Creating a budget, sticking to that budget, saving your money, and being mindful of your money on a daily basis are all everyday deeds for ordinary folk that lead to wealth and wealthy living.

Simple acts of kindness and love:

When we think of acts of kindness and love, we think about doing things for other people. Yes, these types of acts do enrich our lives, but let’s not forget love and kindness for ourselves.

When you board an airplane, you are given instructions, one of which is that in case of an emergency an oxygen mask will deploy. You are instructed to place your mask on first and then assist others. Why? Because you cannot help someone else if you are passed out. In fact, you create a new hazard on a plane if you pass out. How we handle our money works that same way. Remember, you cannot give away what you don’t have. If you create a plan for your money (a budget) and stick to your budget (an act of kindness and love), you will clean up any financial messiness you may have, and you will begin to create wealth and, eventually, a wealthy life. You will relieve a burden for yourself as well as others in your life.

This is a simple yet powerful act of kindness and love. With a stable financial foundation you will be able to help many, many, many other people.

Like Gandalf, sometimes I am afraid. We all are. However, knowing that I can pay attention to the small things and the everyday deeds, and that I can be kind and loving towards myself and others by building a strong financial foundation, gives me courage.

Do not be afraid, you are not alone.

As Galadriel said, ‘If you ever need my help, I will come’.