diff --git a/install.py b/install.py
index 5ecaa71..5650007 100755
--- a/install.py
+++ b/install.py
@@ -273,6 +273,27 @@ def setup_backup_timer(dry_run=False):
 
     ok("restic found")
 
+    # Create config dir and password file now so the user can back up the
+    # password immediately rather than waiting for the first scheduled run.
+    config_dir   = Path.home() / ".config" / "cortex"
+    password_file = config_dir / "restic-password"
+
+    if dry_run:
+        if password_file.exists():
+            ok(f"Password file exists: {password_file}")
+        else:
+            warn(f"Password file missing — would create: {password_file}")
+    else:
+        config_dir.mkdir(mode=0o700, parents=True, exist_ok=True)
+        if not password_file.exists():
+            import secrets
+            password_file.write_text(secrets.token_urlsafe(32) + "\n")
+            password_file.chmod(0o600)
+            ok(f"Password file created: {password_file}")
+            warn("Back this up somewhere safe — it's required to restore from backup")
+        else:
+            ok(f"Password file exists: {password_file}")
+
     svc_content = f"""\
 [Unit]
 Description=Cortex home backup (restic)