diff --git a/bash_profile b/bash_profile
index d28933c..25b7103 100755
--- a/bash_profile
+++ b/bash_profile
@@ -2,7 +2,8 @@ export MAGICK_HOME=/usr/local/ImageMagick
 export DYLD_LIBRARY_PATH=$MAGICK_HOME/lib
 export PATH=$MAGICK_HOME/bin:$PATH
 
-export PATH=/System/Library/Frameworks/Ruby.framework/Versions/1.8/usr/bin/:$PATH
+export GEM_HOME=/Users/mislav/.gems
+export PATH=$GEM_HOME/bin:$PATH
 export PATH=/usr/local/git/bin:$PATH
 export PATH=/usr/local/mysql/bin:$PATH
 export PATH=~/bin:$PATH
@@ -13,5 +14,5 @@ if [ -f ~/.bashrc ]; then
     . ~/.bashrc
 fi
 
-setenv CLICOLOR "1"
-setenv LSCOLORS "ExFxCxDxBxegedabagacad"
\ No newline at end of file
+export CLICOLOR="1"
+export LSCOLORS="ExFxCxDxBxegedabagacad"
diff --git a/gemrc b/gemrc
old mode 100644
new mode 100755
index 7943459..4204059
--- a/gemrc
+++ b/gemrc
@@ -1,5 +1,6 @@
 --- 
 :verbose: true
+gemhome: /Users/mislav/.gems
 gem: --no-ri --no-rdoc
 :update_sources: true
 :sources: