diff --git a/pkg/config/app_config.go b/pkg/config/app_config.go
index aed26be043a9..d51dedaf51f8 100644
--- a/pkg/config/app_config.go
+++ b/pkg/config/app_config.go
@@ -102,21 +102,9 @@ func isCustomConfigFile(path string) bool {
 }
 
 func ConfigDir() string {
-	legacyConfigDirectory := configDirForVendor("jesseduffield")
-	if _, err := os.Stat(legacyConfigDirectory); !os.IsNotExist(err) {
-		return legacyConfigDirectory
-	}
-	configDirectory := configDirForVendor("")
-	return configDirectory
-}
+	_, filePath := findConfigFile("config.yml")
 
-func configDirForVendor(vendor string) string {
-	envConfigDir := os.Getenv("CONFIG_DIR")
-	if envConfigDir != "" {
-		return envConfigDir
-	}
-	configDirs := xdg.New(vendor, "lazygit")
-	return configDirs.ConfigHome()
+	return filepath.Dir(filePath)
 }
 
 func findOrCreateConfigDir() (string, error) {
@@ -245,16 +233,50 @@ func (c *AppConfig) GetTempDir() string {
 }
 
 func configFilePath(filename string) (string, error) {
-	folder, err := findOrCreateConfigDir()
-	if err != nil {
-		return "", err
+	exists, path := findConfigFile(filename)
+
+	if exists {
+		return path, nil
+	} else {
+		return path, os.MkdirAll(filepath.Dir(path), 0o755)
+	}
+}
+
+func findConfigFile(filename string) (exists bool, path string) {
+	if envConfigDir := os.Getenv("CONFIG_DIR"); envConfigDir != "" {
+		return true, filepath.Join(envConfigDir, filename)
+	}
+
+	legacyConfigPath, err := xdg.SearchConfigFile(filepath.Join("jesseduffield", "lazygit", filename))
+	if err == nil {
+		return true, legacyConfigPath
 	}
 
-	return filepath.Join(folder, filename), nil
+	configFilepath, err := xdg.SearchConfigFile(filepath.Join("lazygit", filename))
+	if err == nil {
+		return true, configFilepath
+	}
+
+	return false, filepath.Join(xdg.ConfigHome, "lazygit")
 }
 
 var ConfigFilename = "config.yml"
 
+func stateFilePath(filename string) (string, error) {
+	stateFile, err := xdg.SearchStateFile(filepath.Join("lazygit", filename))
+	if err == nil {
+		return stateFile, nil
+	}
+
+	exists, legacyStateFile := findConfigFile(filename)
+
+	if exists {
+		return legacyStateFile, nil
+	} else {
+		return xdg.StateFile(filepath.Join("lazygit", filename))
+	}
+}
+
 // ConfigFilename returns the filename of the default config file
 func (c *AppConfig) ConfigFilename() string {
 	return filepath.Join(c.UserConfigDir, ConfigFilename)
@@ -267,7 +289,7 @@ func (c *AppConfig) SaveAppState() error {
 		return err
 	}
 
-	filepath, err := configFilePath("state.yml")
+	filepath, err := stateFilePath(stateFileName)
 	if err != nil {
 		return err
 	}
@@ -281,11 +303,13 @@ func (c *AppConfig) SaveAppState() error {
 	return err
 }
 
+var stateFileName = "state.yml"
+
 // loadAppState loads recorded AppState from file
 func loadAppState() (*AppState, error) {
 	appState := getDefaultAppState()
 
-	filepath, err := configFilePath("state.yml")
+	filepath, err := stateFilePath(stateFileName)
 	if err != nil {
 		if os.IsPermission(err) {
 			// apparently when people have read-only permissions they prefer us to fail silently