diff --git a/README.md b/README.md
index 39f547afb..a9b50a724 100644
--- a/README.md
+++ b/README.md
@@ -101,7 +101,13 @@ You can configure the CLI using the command:
 stackit config
 ```
 
-The configurations are stored in `~/stackit/cli-config.json` and are valid for all commands. For example, you can set a default `project-id` by running:
+The configuration is saved in a file. The file's location varies depending on the operating system:
+
+- Unix - `$XDG_CONFIG_HOME/stackit/cli-config.json`
+- MacOS - `$HOME/Library/Application Support/stackit/cli-config.json`
+- Windows - `%AppData%\stackit\cli-config.json`
+
+The configuration options apply to all commands and can be set using the `stackit config set` command. For example, you can set a default `project-id` by running:
 
 ```bash
 stackit config set --project-id xxxx-xxxx-xxxxx
diff --git a/internal/cmd/root.go b/internal/cmd/root.go
index 94c7c1e87..b3f546347 100644
--- a/internal/cmd/root.go
+++ b/internal/cmd/root.go
@@ -50,6 +50,9 @@ func NewRootCmd(version, date string, p *print.Printer) *cobra.Command {
 			argsString := print.BuildDebugStrFromSlice(os.Args)
 			p.Debug(print.DebugLevel, "arguments: %s", argsString)
 
+			configFilePath := viper.ConfigFileUsed()
+			p.Debug(print.DebugLevel, "using config file: %s", configFilePath)
+
 			configKeys := viper.AllSettings()
 			configKeysStr := print.BuildDebugStrFromMap(configKeys)
 			p.Debug(print.DebugLevel, "config keys: %s", configKeysStr)
diff --git a/internal/pkg/auth/storage.go b/internal/pkg/auth/storage.go
index 1bcb6e784..9d08ca070 100644
--- a/internal/pkg/auth/storage.go
+++ b/internal/pkg/auth/storage.go
@@ -18,7 +18,7 @@ type AuthFlow string
 
 const (
 	keyringService     = "stackit-cli"
-	textFileFolderName = ".stackit"
+	textFileFolderName = "stackit"
 	textFileName       = "cli-auth-storage.txt"
 )
 
@@ -78,11 +78,11 @@ func setAuthFieldInEncodedTextFile(key authFieldKey, value string) error {
 		return err
 	}
 
-	homeDir, err := os.UserHomeDir()
+	configDir, err := os.UserConfigDir()
 	if err != nil {
-		return fmt.Errorf("get home dir: %w", err)
+		return fmt.Errorf("get config dir: %w", err)
 	}
-	textFileDir := filepath.Join(homeDir, textFileFolderName)
+	textFileDir := filepath.Join(configDir, textFileFolderName)
 	textFilePath := filepath.Join(textFileDir, textFileName)
 
 	contentEncoded, err := os.ReadFile(textFilePath)
@@ -152,11 +152,11 @@ func getAuthFieldFromEncodedTextFile(key authFieldKey) (string, error) {
 		return "", err
 	}
 
-	homeDir, err := os.UserHomeDir()
+	configDir, err := os.UserConfigDir()
 	if err != nil {
-		return "", fmt.Errorf("get home dir: %w", err)
+		return "", fmt.Errorf("get config dir: %w", err)
 	}
-	textFileDir := filepath.Join(homeDir, textFileFolderName)
+	textFileDir := filepath.Join(configDir, textFileFolderName)
 	textFilePath := filepath.Join(textFileDir, textFileName)
 
 	contentEncoded, err := os.ReadFile(textFilePath)
@@ -183,11 +183,11 @@ func getAuthFieldFromEncodedTextFile(key authFieldKey) (string, error) {
 // If it doesn't, creates it with the content "{}" encoded.
 // If it does, does nothing (and returns nil).
 func createEncodedTextFile() error {
-	homeDir, err := os.UserHomeDir()
+	configDir, err := os.UserConfigDir()
 	if err != nil {
-		return fmt.Errorf("get home dir: %w", err)
+		return fmt.Errorf("get config dir: %w", err)
 	}
-	textFileDir := filepath.Join(homeDir, textFileFolderName)
+	textFileDir := filepath.Join(configDir, textFileFolderName)
 	textFilePath := filepath.Join(textFileDir, textFileName)
 
 	err = os.MkdirAll(textFileDir, os.ModePerm)
diff --git a/internal/pkg/auth/storage_test.go b/internal/pkg/auth/storage_test.go
index 5b09c3c3d..1d3d4dab9 100644
--- a/internal/pkg/auth/storage_test.go
+++ b/internal/pkg/auth/storage_test.go
@@ -345,11 +345,11 @@ func deleteAuthFieldInEncodedTextFile(key authFieldKey) error {
 		return err
 	}
 
-	homeDir, err := os.UserHomeDir()
+	configDir, err := os.UserConfigDir()
 	if err != nil {
-		return fmt.Errorf("get home dir: %w", err)
+		return fmt.Errorf("get config dir: %w", err)
 	}
-	textFileDir := filepath.Join(homeDir, textFileFolderName)
+	textFileDir := filepath.Join(configDir, textFileFolderName)
 	textFilePath := filepath.Join(textFileDir, textFileName)
 
 	contentEncoded, err := os.ReadFile(textFilePath)
diff --git a/internal/pkg/config/config.go b/internal/pkg/config/config.go
index 4077c1d3a..c4d7742a4 100644
--- a/internal/pkg/config/config.go
+++ b/internal/pkg/config/config.go
@@ -39,7 +39,7 @@ const (
 
 // Backend config keys
 const (
-	configFolder        = ".stackit"
+	configFolder        = "stackit"
 	configFileName      = "cli-config"
 	configFileExtension = "json"
 	ProjectNameKey      = "project_name"
@@ -73,9 +73,9 @@ var ConfigKeys = []string{
 var folderPath string
 
 func InitConfig() {
-	home, err := os.UserHomeDir()
+	configDir, err := os.UserConfigDir()
 	cobra.CheckErr(err)
-	configFolderPath := filepath.Join(home, configFolder)
+	configFolderPath := filepath.Join(configDir, configFolder)
 	configFilePath := filepath.Join(configFolderPath, fmt.Sprintf("%s.%s", configFileName, configFileExtension))
 
 	// Write config dir path to global variable