The good H'shem bestows upon us, is not on account of our deeds, for even the smallest of our actions can not equally the tremendous Chesed H'shem showers on as at every moment. "All rewards are a result of GD's grace towards him"
pg439/441
Nefesh Hachaim
H'shem fills all the worlds and all that exists. That, that the world was created and "took up space" does not exclude H'shem from being in every place as it says of H'shem "there is nothing else besides Him"
Gate Three, Chapter Four pg 112