diff --git a/README.md b/README.md
index 56e955a..1a0aa45 100644
--- a/README.md
+++ b/README.md
@@ -93,6 +93,16 @@ This command will:
 
 More about file templating [on wiki](https://github.com/oskvr37/tiddl/wiki/Template-formatting).
 
+## Custom tiddl home path
+
+You can set `TIDDL_PATH` environment variable to use custom home path for tiddl.
+
+Example CLI usage:
+
+```sh
+TIDDL_PATH=~/custom/tiddl tiddl auth login
+```
+
 # Development
 
 Clone the repository
diff --git a/tiddl/config.py b/tiddl/config.py
index c5f7a02..a60a590 100644
--- a/tiddl/config.py
+++ b/tiddl/config.py
@@ -1,15 +1,20 @@
-# 3.0 TODO: change config path to ~/.config/tiddl.json
-
+from os import environ, makedirs
 from pydantic import BaseModel
 from pathlib import Path
 
 from tiddl.models.constants import TrackArg, SinglesFilter
 
-HOME_PATH = Path.home()
+TIDDL_ENV_KEY = "TIDDL_PATH"
+
+# 3.0 TODO: rename HOME_PATH to TIDDL_PATH
+# 3.0 TODO: add /tiddl to Path.home()
+HOME_PATH = Path(environ[TIDDL_ENV_KEY]) if environ.get(TIDDL_ENV_KEY) else Path.home()
+
+makedirs(HOME_PATH, exist_ok=True)
+
 CONFIG_PATH = HOME_PATH / "tiddl.json"
 CONFIG_INDENT = 2
 
-
 class TemplateConfig(BaseModel):
     track: str = "{artist} - {title}"
     video: str = "{artist} - {title}"