diff --git a/.env.template b/.env.template
index e3645f22..13b756ba 100644
--- a/.env.template
+++ b/.env.template
@@ -1,2 +1,13 @@
 # used in migrations to fetch actual currencies rates
 API_LAYER_API_KEY=
+
+APPLICATION_HOST=
+APPLICATION_PORT=
+APPLICATION_JWT_SECRET=
+APPLICATION_DB_HOST=
+APPLICATION_DB_USERNAME=
+APPLICATION_DB_PASSWORD=
+APPLICATION_DB_DATABASE=
+APPLICATION_DB_PORT=
+APPLICATION_DB_DIALECT=
+APPLICATION_REDIS_HOST=
diff --git a/.eslintignore b/.eslintignore
index fa9bd52d..24c38ec9 100644
--- a/.eslintignore
+++ b/.eslintignore
@@ -1,4 +1,4 @@
 src/seeders/**/*.js
 src/migrations/**/*.js
 .eslintrc.js
-config/db/config.js
+config/**
diff --git a/.gitignore b/.gitignore
index c3154412..f02f89e0 100644
--- a/.gitignore
+++ b/.gitignore
@@ -77,6 +77,8 @@ typings/
 # dotenv environment variables file
 .env
 .env.test
+.env.development
+.env.production
 
 # parcel-bundler cache (https://parceljs.org/)
 .cache
diff --git a/.sequelizerc b/.sequelizerc
index f39a36bd..7376f30d 100644
--- a/.sequelizerc
+++ b/.sequelizerc
@@ -1,5 +1,5 @@
 const path = require('path');
-require('dotenv').config();
+require('dotenv').config({ path: `.env.${process.env.NODE_ENV}` })
 
 module.exports = {
   "config": path.resolve('./config/db', 'config.js'),
diff --git a/config/db/config.js b/config/db/config.js
index c718271a..706a53bf 100644
--- a/config/db/config.js
+++ b/config/db/config.js
@@ -1,3 +1,4 @@
+require('dotenv').config({ path: `.env.${process.env.NODE_ENV}` });
 const config = require('config').get('db');
 
 const options = {
diff --git a/config/default.js b/config/default.js
new file mode 100644
index 00000000..eea66cd5
--- /dev/null
+++ b/config/default.js
@@ -0,0 +1,26 @@
+// Default file that being merged with others env-related files
+
+module.exports = {
+  name: 'budget-tracker-be',
+  host: process.env.APPLICATION_HOST,
+  port: process.env.APPLICATION_PORT,
+  apiPrefix: '/api/v1',
+  jwtSecret: process.env.APPLICATION_JWT_SECRET,
+  db: {
+    host: process.env.APPLICATION_DB_HOST,
+    username: process.env.APPLICATION_DB_USERNAME,
+    password: process.env.APPLICATION_DB_PASSWORD,
+    database: process.env.APPLICATION_DB_DATABASE,
+    port: process.env.APPLICATION_DB_PORT,
+    dialect: process.env.APPLICATION_DB_DIALECT,
+    logging: true,
+  },
+  redis: {
+    host: process.env.APPLICATION_REDIS_HOST,
+  },
+  bankIntegrations: {
+    monobank: {
+      apiEndpoint: 'https://api.monobank.ua'
+    }
+  },
+}
diff --git a/config/default.json b/config/default.json
deleted file mode 100644
index f222d7cb..00000000
--- a/config/default.json
+++ /dev/null
@@ -1,8 +0,0 @@
-{
-  "name": "budget-tracker-be",
-  "bankIntegrations": {
-    "monobank": {
-      "apiEndpoint": "https://api.monobank.ua"
-    }
-  }
-}
diff --git a/config/development.js b/config/development.js
new file mode 100644
index 00000000..238eb4e1
--- /dev/null
+++ b/config/development.js
@@ -0,0 +1,5 @@
+module.exports = {
+  env: 'development',
+  envShort: 'dev',
+  hostWebhooksCallback: 'http://d8d75e719def.ngrok.io',
+}
diff --git a/config/development.json b/config/development.json
deleted file mode 100644
index 0a1d6054..00000000
--- a/config/development.json
+++ /dev/null
@@ -1,21 +0,0 @@
-{
-  "env": "development",
-  "envShort": "dev",
-  "host": "127.0.0.1",
-  "port": "8081",
-  "apiPrefix": "/api/v1",
-  "jwtSecret": "dev-jwt",
-  "hostWebhooksCallback": "http://d8d75e719def.ngrok.io",
-  "db": {
-    "host": "127.0.0.1",
-    "username": "letehaha",
-    "password": "password",
-    "database": "budget-tracker",
-    "port": "5432",
-    "dialect": "postgres",
-    "logging": true
-  },
-  "redis": {
-    "host": "127.0.0.1"
-  }
-}
diff --git a/config/production.js b/config/production.js
new file mode 100644
index 00000000..f7eeede3
--- /dev/null
+++ b/config/production.js
@@ -0,0 +1,5 @@
+module.exports = {
+  env: 'production',
+  envShort: 'prod',
+  hostWebhooksCallback: 'http://d8d75e719def.ngrok.io',
+}
diff --git a/config/production.json b/config/production.json
deleted file mode 100644
index e3558d94..00000000
--- a/config/production.json
+++ /dev/null
@@ -1,21 +0,0 @@
-{
-  "env": "production",
-  "envShort": "prod",
-  "host": "127.0.0.1",
-  "port": "8081",
-  "apiPrefix": "/api/v1",
-  "jwtSecret": "prod-jwt",
-  "hostWebhooksCallback": "http://d8d75e719def.ngrok.io",
-  "db": {
-    "host": "db",
-    "username": "letehaha",
-    "password": "password",
-    "database": "budget-tracker",
-    "port": "5432",
-    "dialect": "postgres",
-    "logging": false
-  },
-  "redis": {
-    "host": "redis"
-  }
-}
diff --git a/config/test.js b/config/test.js
new file mode 100644
index 00000000..52d4add1
--- /dev/null
+++ b/config/test.js
@@ -0,0 +1,5 @@
+module.exports = {
+  env: 'test',
+  envShort: 'test',
+  hostWebhooksCallback: 'http://d8d75e719def.ngrok.io',
+}
diff --git a/config/test.json b/config/test.json
deleted file mode 100644
index 36ead198..00000000
--- a/config/test.json
+++ /dev/null
@@ -1,21 +0,0 @@
-{
-  "env": "development",
-  "envShort": "dev",
-  "host": "127.0.0.1",
-  "port": "8081",
-  "apiPrefix": "/api/v1",
-  "jwtSecret": "dev-jwt",
-  "hostWebhooksCallback": "http://d8d75e719def.ngrok.io",
-  "db": {
-    "host": "127.0.0.1",
-    "username": "letehaha",
-    "password": "password",
-    "database": "budget-tracker_test",
-    "port": "5432",
-    "dialect": "postgres",
-    "logging": false
-  },
-  "redis": {
-    "host": "127.0.0.1"
-  }
-}
diff --git a/jest.config.ts b/jest.config.ts
index 20cb5d9c..6ae872f7 100644
--- a/jest.config.ts
+++ b/jest.config.ts
@@ -3,7 +3,7 @@
 export default {
   preset: 'ts-jest',
   testEnvironment: 'node',
-  testMatch: ['**/?(*.)+(spec|test|e2e).[jt]s?(x)'],
+  testMatch: ['**/?(*.)+(unit|spec|e2e).[jt]s?(x)'],
   globals: {
     'ts-jest': {
       tsconfig: 'tsconfig.json',
diff --git a/src/app.ts b/src/app.ts
index 240cfec5..93205b25 100644
--- a/src/app.ts
+++ b/src/app.ts
@@ -1,7 +1,7 @@
 import dotenv from "dotenv";
 import 'module-alias/register';
 
-dotenv.config();
+dotenv.config({ path: `.env.${process.env.NODE_ENV}` });
 import config from 'config';
 import express, { Request } from 'express';
 import cors from 'cors';
diff --git a/src/models/index.ts b/src/models/index.ts
index 59cb8f0d..62ca313d 100644
--- a/src/models/index.ts
+++ b/src/models/index.ts
@@ -15,7 +15,7 @@ const sequelize = new Sequelize({
   models: [__dirname + '/**/*.model.ts'],
 });
 
-if (process.env.NODE_ENV === 'development') {
+if (['development', 'test'].includes(process.env.NODE_ENV)) {
   console.log('DBConfig', DBConfig);
 }