diff --git a/README.md b/README.md
index d3a58681..f6143223 100644
--- a/README.md
+++ b/README.md
@@ -225,7 +225,7 @@ Bundled, but not enabled by default:
 ## Creating your own rules
 
 For adding your own rule you should create `your-rule-name.py`
-in `~/.thefuck/rules`. The rule should contain two functions:
+in `~/.config/thefuck/rules`. The rule should contain two functions:
 
 ```python
 match(command: Command) -> bool
@@ -242,7 +242,7 @@ and optional `enabled_by_default`, `requires_output` and `priority` variables.
 `Command` has three attributes: `script`, `stdout` and `stderr`.
 
 *Rules api changed in 3.0:* For accessing settings in rule you need to import it with `from thefuck.conf import settings`.
-`settings` is a special object filled with `~/.thefuck/settings.py` and values from env ([see more below](#settings)).
+`settings` is a special object filled with `~/.config/thefuck/settings.py` and values from env ([see more below](#settings)).
 
 Simple example of the rule for running script with `sudo`:
 
@@ -272,7 +272,7 @@ requires_output = True
 
 ## Settings
 
-The Fuck has a few settings parameters which can be changed in `~/.thefuck/settings.py`:
+The Fuck has a few settings parameters which can be changed in `$XDG_CONFIG_HOME/thefuck/settings.py` (`$XDG_CONFIG_HOME` defaults to `~/.config`):
 
 * `rules` – list of enabled rules, by default `thefuck.conf.DEFAULT_RULES`;
 * `exclude_rules` – list of disabled rules, by default `[]`;
diff --git a/thefuck/conf.py b/thefuck/conf.py
index 3e6e55f5..54b2d370 100644
--- a/thefuck/conf.py
+++ b/thefuck/conf.py
@@ -26,7 +26,7 @@ ENV_TO_ATTR = {'THEFUCK_RULES': 'rules',
                'THEFUCK_PRIORITY': 'priority',
                'THEFUCK_DEBUG': 'debug'}
 
-SETTINGS_HEADER = u"""# ~/.thefuck/settings.py: The Fuck settings file
+SETTINGS_HEADER = u"""# The Fuck settings file
 #
 # The rules are defined as in the example bellow:
 #
@@ -73,7 +73,15 @@ class Settings(dict):
 
     def _setup_user_dir(self):
         """Returns user config dir, create it when it doesn't exist."""
+
+        # for backward compatibility, use `~/.thefuck` if it exists
         user_dir = Path(os.path.expanduser('~/.thefuck'))
+
+        if not user_dir.is_dir():
+            default_xdg_config_dir = os.path.expanduser("~/.config")
+            xdg_config_dir = os.getenv("XDG_CONFIG_HOME", default_xdg_config_dir)
+            user_dir = Path(os.path.join(xdg_config_dir, 'thefuck'))
+
         rules_dir = user_dir.joinpath('rules')
         if not rules_dir.is_dir():
             rules_dir.mkdir(parents=True)
diff --git a/thefuck/utils.py b/thefuck/utils.py
index 06ec9342..fba72a3f 100644
--- a/thefuck/utils.py
+++ b/thefuck/utils.py
@@ -185,7 +185,18 @@ def cache(*depends_on):
         if cache.disabled:
             return fn(*args, **kwargs)
 
-        cache_path = settings.user_dir.joinpath('.thefuck-cache').as_posix()
+        default_xdg_cache_dir = os.path.expanduser("~/.cache")
+        cache_dir = os.getenv("XDG_CACHE_HOME", default_xdg_cache_dir)
+        cache_path = Path(cache_dir).joinpath('thefuck').as_posix()
+
+        # Ensure the cache_path exists, Python 2 does not have the exist_ok
+        # parameter
+        try:
+            os.makedirs(cache_dir)
+        except OSError:
+            if not os.path.isdir(cache_dir):
+                raise
+
         # A bit obscure, but simplest way to generate unique key for
         # functions and methods in python 2 and 3:
         key = '{}.{}'.format(fn.__module__, repr(fn).split('at')[0])