diff --git a/crates/notcore/src/config.rs b/crates/notcore/src/config.rs
index 4d9dbb2..6db7814 100644
--- a/crates/notcore/src/config.rs
+++ b/crates/notcore/src/config.rs
@@ -1,7 +1,7 @@
 use serde::de::DeserializeOwned;
 use serde::{Deserialize, Serialize};
 use std::collections::HashMap;
-use std::path::Path;
+use std::path::{Path, PathBuf};
 
 use crate::NotfilesError;
 
@@ -102,13 +102,28 @@ where
     toml::from_str(&content).map_err(|err| parse_error(path, err))
 }
 
+/// Returns the default config path: `~/.config/notfiles/notfiles.toml`.
+pub fn default_config_path() -> PathBuf {
+    dirs::config_dir()
+        .unwrap_or_else(|| PathBuf::from("~/.config"))
+        .join("notfiles")
+        .join("notfiles.toml")
+}
+
+/// Returns the default dotfiles directory: `~/.notfiles`.
+pub fn default_dotfiles_dir() -> PathBuf {
+    dirs::home_dir()
+        .unwrap_or_else(|| PathBuf::from("~"))
+        .join(".notfiles")
+}
+
 impl Config {
-    pub fn load(dotfiles_dir: &Path) -> Result<Self, NotfilesError> {
-        let config_path = dotfiles_dir.join("notfiles.toml");
+    /// Load config from an explicit path. Returns `Config::default()` if the file does not exist.
+    pub fn load_from(config_path: &Path) -> Result<Self, NotfilesError> {
         if !config_path.exists() {
             return Ok(Config::default());
         }
-        let content = std::fs::read_to_string(&config_path).map_err(|e| {
+        let content = std::fs::read_to_string(config_path).map_err(|e| {
             NotfilesError::Config(format!("reading {}: {e}", config_path.display()))
         })?;
         let config: Config = toml::from_str(&content).map_err(|e| {
@@ -117,6 +132,12 @@ impl Config {
         Ok(config)
     }
 
+    /// Load config from `<dotfiles_dir>/notfiles.toml` (legacy location).
+    /// Prefer [`Config::load_from`] with an explicit path in new call sites.
+    pub fn load(dotfiles_dir: &Path) -> Result<Self, NotfilesError> {
+        Self::load_from(&dotfiles_dir.join("notfiles.toml"))
+    }
+
     pub fn method_for(&self, package: &str) -> Method {
         self.packages
             .get(package)
diff --git a/crates/notfiles/src/cli.rs b/crates/notfiles/src/cli.rs
index fdaa300..0de71eb 100644
--- a/crates/notfiles/src/cli.rs
+++ b/crates/notfiles/src/cli.rs
@@ -4,10 +4,14 @@ use std::path::PathBuf;
 #[derive(Parser, Debug)]
 #[command(name = "notfiles", about = "A modern dotfiles manager")]
 pub struct Cli {
-    /// Path to the dotfiles directory (default: current directory)
+    /// Path to the dotfiles directory (default: ~/.notfiles)
     #[arg(long, global = true)]
     pub dir: Option<PathBuf>,
 
+    /// Path to the config file (default: ~/.config/notfiles/notfiles.toml)
+    #[arg(long, global = true)]
+    pub config: Option<PathBuf>,
+
     /// Show what would be done without making changes
     #[arg(long, global = true)]
     pub dry_run: bool,
diff --git a/crates/notfiles/src/main.rs b/crates/notfiles/src/main.rs
index a4aaff2..e5c8788 100644
--- a/crates/notfiles/src/main.rs
+++ b/crates/notfiles/src/main.rs
@@ -15,10 +15,26 @@ fn main() -> Result<()> {
     let cli = Cli::parse();
     let dotfiles_dir = cli
         .dir
-        .unwrap_or_else(|| std::env::current_dir().expect("cannot determine current directory"));
+        .unwrap_or_else(notcore::config::default_dotfiles_dir);
+
+    // Init is the only command allowed when the dotfiles dir doesn't exist yet.
+    if matches!(cli.command, Command::Init) {
+        return cmd_init(&dotfiles_dir, cli.config.as_deref());
+    }
+
+    if !dotfiles_dir.exists() {
+        anyhow::bail!(
+            "dotfiles directory not found: {}\nRun `notfiles init` to create it.",
+            dotfiles_dir.display()
+        );
+    }
     let dotfiles_dir = fs::canonicalize(&dotfiles_dir)
         .with_context(|| format!("dotfiles directory not found: {}", dotfiles_dir.display()))?;
 
+    let config_path = cli
+        .config
+        .unwrap_or_else(notcore::config::default_config_path);
+
     let reporter: Box<dyn Reporter> = if cli.json {
         Box::new(JsonReporter)
     } else {
@@ -37,14 +53,14 @@ fn main() -> Result<()> {
                 detect::print_detected(&managers);
             }
         }
-        Command::Init => cmd_init(&dotfiles_dir)?,
+        Command::Init => unreachable!("handled above"),
         Command::Link {
             force,
             no_backup,
             packages,
         } => {
             let fs = &adapters::FileStoreImpl;
-            let config = Config::load(&dotfiles_dir)?;
+            let config = Config::load_from(&config_path)?;
             config.validate()?;
             let mut state = State::load(&dotfiles_dir, fs)?;
             let pkgs = resolve_packages_filtered_with_store(&dotfiles_dir, &packages, &config, fs)?;
@@ -89,7 +105,7 @@ fn main() -> Result<()> {
         }
         Command::Unlink { packages } => {
             let fs = &adapters::FileStoreImpl;
-            let config = Config::load(&dotfiles_dir)?;
+            let config = Config::load_from(&config_path)?;
             let _ = &config; // loaded but not needed for unlink
             let mut state = State::load(&dotfiles_dir, fs)?;
             let pkgs = if packages.is_empty() {
@@ -145,7 +161,7 @@ fn main() -> Result<()> {
         }
         Command::Check => {
             let fs = &adapters::FileStoreImpl;
-            let config = Config::load(&dotfiles_dir)?;
+            let config = Config::load_from(&config_path)?;
             config.validate()?;
             let all = resolve_packages_filtered_with_store(&dotfiles_dir, &[], &config, fs)?;
 
@@ -171,7 +187,7 @@ fn main() -> Result<()> {
         }
         Command::Diff { packages } => {
             let fs = &adapters::FileStoreImpl;
-            let config = Config::load(&dotfiles_dir)?;
+            let config = Config::load_from(&config_path)?;
             config.validate()?;
             let state = State::load(&dotfiles_dir, fs)?;
             let pkgs = resolve_packages_filtered_with_store(&dotfiles_dir, &packages, &config, fs)?;
@@ -183,7 +199,7 @@ fn main() -> Result<()> {
         }
         Command::Adopt { package, files } => {
             let fs = &adapters::FileStoreImpl;
-            let config = Config::load(&dotfiles_dir)?;
+            let config = Config::load_from(&config_path)?;
             let mut state = State::load(&dotfiles_dir, fs)?;
             let opts = LinkOptions {
                 force: false,
@@ -217,7 +233,7 @@ fn main() -> Result<()> {
         }
         Command::Status { packages } => {
             let fs = &adapters::FileStoreImpl;
-            let config = Config::load(&dotfiles_dir)?;
+            let config = Config::load_from(&config_path)?;
             config.validate()?;
             let state = State::load(&dotfiles_dir, fs)?;
             let pkgs = resolve_packages_filtered_with_store(&dotfiles_dir, &packages, &config, fs)?;
@@ -236,13 +252,29 @@ fn main() -> Result<()> {
     Ok(())
 }
 
-fn cmd_init(dotfiles_dir: &std::path::Path) -> Result<()> {
-    let config_path = dotfiles_dir.join("notfiles.toml");
+fn cmd_init(
+    dotfiles_dir: &std::path::Path,
+    config_override: Option<&std::path::Path>,
+) -> Result<()> {
+    if !dotfiles_dir.exists() {
+        fs::create_dir_all(dotfiles_dir)
+            .with_context(|| format!("creating dotfiles dir: {}", dotfiles_dir.display()))?;
+        println!("Created {}", dotfiles_dir.display());
+    }
+
+    let config_path = config_override
+        .map(std::path::Path::to_path_buf)
+        .unwrap_or_else(notcore::config::default_config_path);
+
     if config_path.exists() {
-        println!("notfiles.toml already exists.");
+        println!("{} already exists.", config_path.display());
         return Ok(());
     }
+    if let Some(parent) = config_path.parent() {
+        fs::create_dir_all(parent)
+            .with_context(|| format!("creating config dir: {}", parent.display()))?;
+    }
     fs::write(&config_path, notcore::config::starter_toml())?;
-    println!("Created notfiles.toml");
+    println!("Created {}", config_path.display());
     Ok(())
 }
diff --git a/crates/notfiles/tests/integration.rs b/crates/notfiles/tests/integration.rs
index a63d7dc..273533d 100644
--- a/crates/notfiles/tests/integration.rs
+++ b/crates/notfiles/tests/integration.rs
@@ -14,9 +14,12 @@ fn notfiles_bin() -> std::path::PathBuf {
 }
 
 fn run(dotfiles: &Path, args: &[&str]) -> (String, String, bool) {
+    let config = dotfiles.join("notfiles.toml");
     let output = Command::new(notfiles_bin())
         .arg("--dir")
         .arg(dotfiles)
+        .arg("--config")
+        .arg(&config)
         .args(args)
         .output()
         .expect("failed to run notfiles");
@@ -61,7 +64,7 @@ fn test_init_creates_config() {
 
     let (stdout, _, ok) = run(&dotfiles, &["init"]);
     assert!(ok);
-    assert!(stdout.contains("Created notfiles.toml"));
+    assert!(stdout.contains("Created"), "expected Created in: {stdout}");
     assert!(dotfiles.join("notfiles.toml").exists());
 }