diff --git a/README.md b/README.md
index 29cf35f..abd2990 100644
--- a/README.md
+++ b/README.md
@@ -1,7 +1,7 @@
 # My Nix config
 
 To install, put `system` to `/etc/nixos`, put `home` to
-`~/.config/nixpkgs`.
+`~/.config/home-manager` (and `overlays.nix` to `~/.config/nixpkgs`)
 
 The reason they are separate is because I want to be able to iterate
 home config quickly, and `nixos-rebuild`'ing the entire sytem for every
diff --git a/home/common/i3-sway.nix b/home/common/i3-sway.nix
index 5ec9ae2..0e7cfae 100644
--- a/home/common/i3-sway.nix
+++ b/home/common/i3-sway.nix
@@ -80,7 +80,7 @@ commonConfig = {
   inherit modifier;
   startup = [
     { command = builtins.toString (with pkgs; writeShellScript "init-wm" ''
-      ${callPackage ../pkgs/home-daemon {}}/bin/dotfiles-home-daemon system76-scheduler&
+      ${home-daemon}/bin/home-daemon system76-scheduler&
       ${gnome.zenity}/bin/zenity --password | (${keepassxc}/bin/keepassxc --pw-stdin ~/Nextcloud/keepass.kdbx&)
       # nextcloud and nheko need secret service access
       ${nextcloud-client}/bin/nextcloud --background&
@@ -448,7 +448,7 @@ in
     };
     terminal = config.terminalBin;
     extraConfig = {
-      modi = [ "steam:${pkgs.callPackage ../pkgs/rofi-steam-game-list {}}/bin/rofi-steam-game-list" "drun" "run" "ssh" ];
+      modi = [ "steam:${pkgs.rofi-steam-game-list}/bin/rofi-steam-game-list" "drun" "run" "ssh" ];
       icon-theme = "hicolor";
       drun-match-fields = [ "name" "generic" "exec" "keywords" ];
       show-icons = true;
diff --git a/home/flake.nix b/home/flake.nix
index 5ad4b7f..d908e65 100644
--- a/home/flake.nix
+++ b/home/flake.nix
@@ -37,6 +37,12 @@
               "https://cache.nixos.org"
               # "https://nixpkgs-wayland.cachix.org"
             ];
+            overlays = [
+              (self: super: import ./pkgs {
+                pkgs = super;
+              })
+              nix-gaming.overlays.default
+            ];
           };
           extraSpecialArgs = {
             # pkgs-wayland = nixpkgs-wayland.packages.${system};
@@ -44,13 +50,6 @@
           modules = [
             notlua.nixosModules.default
             nur.nixosModules.nur
-            { nixpkgs.overlays = [
-              nix-gaming.overlays.default
-              (self: super: {
-                clang_latest = super.clang_15;
-                clang-tools_latest = super.clang-tools_15;
-              })
-            ]; }
             ./hosts/nixmsi.nix
             (getPriv "nixmsi")
           ];
diff --git a/home/hosts/nixmsi.nix b/home/hosts/nixmsi.nix
index c0190f9..6b81521 100644
--- a/home/hosts/nixmsi.nix
+++ b/home/hosts/nixmsi.nix
@@ -102,7 +102,7 @@
     kdenlive
     mediainfo
     glaxnimate
-    (pkgs.callPackage ../pkgs/lalrpop { })
+    lalrpop
     # waiting until the PR gets merged
     (looking-glass-client.overrideAttrs (old: {
       version = "B6";
diff --git a/home/pkgs/default.nix b/home/pkgs/default.nix
new file mode 100644
index 0000000..1ed0e08
--- /dev/null
+++ b/home/pkgs/default.nix
@@ -0,0 +1,7 @@
+{ pkgs, ... }: {
+  lalrpop = pkgs.callPackage ./lalrpop { };
+  home-daemon = pkgs.callPackage ./home-daemon { };
+  rofi-steam-game-list = pkgs.callPackage ./rofi-steam-game-list { };
+  clang_latest = pkgs.clang_15;
+  clang-tools_latest = pkgs.clang-tools_15;
+}
diff --git a/home/pkgs/home-daemon/Cargo.lock b/home/pkgs/home-daemon/Cargo.lock
index 1232c1b..c843b62 100644
--- a/home/pkgs/home-daemon/Cargo.lock
+++ b/home/pkgs/home-daemon/Cargo.lock
@@ -228,7 +228,7 @@ dependencies = [
 ]
 
 [[package]]
-name = "dotfiles-home-daemon"
+name = "home-daemon"
 version = "0.1.0"
 dependencies = [
  "futures-util",
diff --git a/home/pkgs/home-daemon/Cargo.toml b/home/pkgs/home-daemon/Cargo.toml
index 0b1bc18..bd3d1d8 100644
--- a/home/pkgs/home-daemon/Cargo.toml
+++ b/home/pkgs/home-daemon/Cargo.toml
@@ -1,5 +1,5 @@
 [package]
-name = "dotfiles-home-daemon"
+name = "home-daemon"
 version = "0.1.0"
 edition = "2021"
 
diff --git a/home/overlays.nix b/overlays.nix
similarity index 100%
rename from home/overlays.nix
rename to overlays.nix
diff --git a/update.sh b/update.sh
index c59350c..e33078f 100755
--- a/update.sh
+++ b/update.sh
@@ -1,5 +1,6 @@
 #!/usr/bin/env bash
 rm -rf ./home ./system
 cp -r /etc/nixos ./system
-cp -r ~/.config/nixpkgs ./home
+cp -r ~/.config/home-manager ./home
+cp ~/.config/nixpkgs/overlays.nix ./overlays.nix