Monastic Life in the Caves
Theodore renounced his wealth on entering the monastic life, distributing it to the poor, and settled in the Varangian Cave, adjoining the caves associated with Saint Theodosius in the Near Caves of Kiev. When he later fell into despair over having given away his possessions, the monk Basil consoled and strengthened him, urging him not to forget the reward of his renunciation and offering to share his own goods with him.
By tradition, while Basil was away for three months a demon assumed Basil's form and tried to persuade Theodore that robbers had hidden treasure in the cave, tempting him back toward worldly wealth; when the real Basil returned, the illusion vanished. To combat the passion of avarice, Theodore took up grinding grain at night with a millstone, occupying his idle hours with labor.