diff --git a/README.md b/README.md
index 8ab2300..2565f14 100644
--- a/README.md
+++ b/README.md
@@ -2,36 +2,41 @@
 
 **I do not recommend this project being used for ones own infrastructure, as
 this project is heavily attuned to my specific host/network setup**
+
 The Ansible Project to provision fresh Debian VMs for my Proxmox instances.
-Some values are hard coded such as the public key both in
-[./scripts/debian_seed.sh](./scripts/debian_seed.sh) and [./group_vars/all/vars.yml](./group_vars/all/vars.yml).
 
-## Prerequisites
+## Configuration
 
-- [secrets.yml](secrets.yml) in the root directory of this repository.
-  Skeleton file can be found as [./secrets.yml.skeleton](./secrets.yml.skeleton).
-- IP Configuration of hosts like in [./host_vars/\*](./host_vars/*)
-- Setup [~/.ssh/config](~/.ssh/config) for the respective hosts used.
-- Install `passlib` for your operating system. Needed to hash passwords ad-hoc.
+The configuration of this project is done via files in the `./vars` directory.
+The inventory is composed of `.ini` files in the `./vars` directory. Each `.ini` file represents an inventory and can be used with the `-i` flag when running playbooks.
 
-## Improvable Variables
+The variables for the hosts and groups are defined in the `./vars/group_vars` directory. The structure of this directory is as follows:
 
-- `group_vars/k3s/vars.yml`:
-  - `k3s.server.ips`: Take list of IPs from host_vars `k3s_server*.yml`.
-  - `k3s_db_connection_string`: Embed this variable in the `k3s.db.`-directory.
-    Currently causes loop.
+```
+vars/
+├── group_vars/
+│   ├── all/
+│   │   ├── secrets.yml
+│   │   └── vars.yml
+│   ├── <group_name>/
+│   │   ├── *.yml
+├── docker.ini
+├── k3s.ini
+├── kubernetes.ini
+├── proxmox.ini
+└── vps.ini
+```
+
+The `all` group contains variables that are common to all hosts. Each other directory in `group_vars` corresponds to a group defined in the inventory files and contains variables specific to that group.
 
 ## Run Playbook
 
-To run a first playbook and test the setup the following command can be executed.
+To run a playbook, you need to specify the inventory file and the playbook file. For example, to run the `k3s-servers.yml` playbook with the `k3s.ini` inventory, you can use the following command:
 
 ```sh
-ansible-playbook -i production -J k3s-servers.yml
+ansible-playbook -i vars/k3s.ini playbooks/k3s-servers.yml
 ```
 
-This will run the [./k3s-servers.yml](./k3s-servers.yml) playbook and execute
-its roles.
-
 ## After successful k3s installation
 
 To access our Kubernetes cluster from our host machine to work on it via
@@ -84,4 +89,4 @@ echo 1 | sudo tee /sys/class/block/sda/device/rescan
 sudo fdisk -l /dev/sda # To check
 # sudo apt-get install cloud-guest-utils
 sudo growpart /dev/sda 1
-```
+```
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