diff --git a/jrnl/cli.py b/jrnl/cli.py
index 65a53516..87d51709 100644
--- a/jrnl/cli.py
+++ b/jrnl/cli.py
@@ -15,6 +15,7 @@ from . import install
 from . import plugins
 from .util import ERROR_COLOR, RESET_COLOR, UserAbort
 import jrnl
+from os.path import abspath, join, exists
 import argparse
 import sys
 import logging
@@ -28,6 +29,7 @@ def parse_args(args=None):
     parser.add_argument('-v', '--version', dest='version', action="store_true", help="prints version information and exits")
     parser.add_argument('-ls', dest='ls', action="store_true", help="displays accessible journals")
     parser.add_argument('-d', '--debug', dest='debug', action='store_true', help='execute in debug mode')
+    parser.add_argument('-create', help='create a new journal', metavar='NAME')
 
     composing = parser.add_argument_group('Composing', 'To write an entry simply write it on the command line, e.g. "jrnl yesterday at 1pm: Went to the gym."')
     composing.add_argument('text', metavar='', nargs="*")
@@ -157,14 +159,34 @@ def run(manual_args=None):
     log.debug('Using configuration "%s"', config)
     original_config = config.copy()
 
+    if args.create:
+        journal_name = args.create
+
+        # if the journal with the same name already exists
+        if journal_name in config['journals']:
+            util.prompt("Journal with `{0}` name already exists.".format(journal_name))
+            sys.exit(1)
+
+        # create a config entry for the new journal
+        default_file_path = join(abspath('.'),install.DEFAULT_JOURNAL_NAME)
+        config = install.create(journal_name, default_file_path, config)
+        sys.exit(0)
+
     # If the first textual argument points to a journal file,
     # use this!
-    journal_name = args.text[0] if (args.text and args.text[0] in config['journals']) else 'default'
-
-    if journal_name is not 'default':
+    if args.text and args.text[0] in config['journals']:
+        journal_name = args.text[0]
         args.text = args.text[1:]
-    elif "default" not in config['journals']:
+    # If the current folder contains .jrnl file, read the journal name from it
         util.prompt("No default journal configured.")
+    elif exists('.jrnl'):
+        with open('.jrnl', 'r') as fp:
+            journal_name = fp.read().strip()
+    else:
+        journal_name = 'default'
+
+    if journal_name not in config['journals']:
+        util.prompt("No '{}' journal configured.".format(journal_name))
         util.prompt(list_journals(config))
         sys.exit(1)
 
diff --git a/jrnl/install.py b/jrnl/install.py
index 5a80562f..88c6d470 100644
--- a/jrnl/install.py
+++ b/jrnl/install.py
@@ -6,6 +6,7 @@ import readline
 import glob
 import getpass
 import os
+import sys
 import xdg.BaseDirectory
 from . import util
 from . import upgrade
@@ -109,7 +110,7 @@ def load_or_install_jrnl():
         return config
 
 
-def install():
+def create(journal_name, default_file_path=None, config=None):
     def autocomplete(text, state):
         expansions = glob.glob(os.path.expanduser(os.path.expandvars(text)) + '*')
         expansions = [e + "/" if os.path.isdir(e) else e for e in expansions]
@@ -119,12 +120,25 @@ def install():
     readline.parse_and_bind("tab: complete")
     readline.set_completer(autocomplete)
 
-    # Where to create the journal?
-    path_query = 'Path to your journal file (leave blank for {}): '.format(JOURNAL_FILE_PATH)
-    journal_path = util.py23_input(path_query).strip() or JOURNAL_FILE_PATH
-    default_config['journals']['default'] = os.path.expanduser(os.path.expandvars(journal_path))
+     # Take the default config if none is provided
+    if config is None:
+        config = default_config
 
-    path = os.path.split(default_config['journals']['default'])[0]  # If the folder doesn't exist, create it
+    # Set up the default journal file path
+    if default_file_path is None:
+        default_file_path = JOURNAL_FILE_PATH
+
+
+    # Where to create the journal?
+    path_query = 'Path to your journal file (leave blank for {}): '.format(default_file_path)
+    journal_path = util.py23_input(path_query).strip() or default_file_path
+    journal_path = os.path.expanduser(os.path.expandvars(journal_path))
+
+    config['journals'][journal_name] = {'journal': journal_path}
+    if os.path.exists(journal_path) and not util.yesno("File {} already exists. Do you still want to use it?".format(journal_path), default=False):
+        sys.exit(1)
+
+    path = os.path.split(config['journals'][journal_name]['journal'])[0]  # If the folder doesn't exist, create it
     try:
         os.makedirs(path)
     except OSError:
@@ -133,18 +147,21 @@ def install():
     # Encrypt it?
     password = getpass.getpass("Enter password for journal (leave blank for no encryption): ")
     if password:
-        default_config['encrypt'] = True
+        config['journals'][journal_name] = True
         if util.yesno("Do you want to store the password in your keychain?", default=True):
-            util.set_keychain("default", password)
+            util.set_keychain(journal_name, password)
         else:
-            util.set_keychain("default", None)
-        EncryptedJournal._create(default_config['journals']['default'], password)
+            util.set_keychain(journal_name, None)
+        EncryptedJournal._create(journal_path, password)
         print("Journal will be encrypted.")
     else:
-        PlainJournal._create(default_config['journals']['default'])
+        PlainJournal._create(journal_path)
 
     config = default_config
     save_config(config)
     if password:
         config['password'] = password
     return config
+
+def install():
+    return create('default')