diff --git a/bin/psalm b/bin/psalm
index 0d99c3644..df8c21272 100755
--- a/bin/psalm
+++ b/bin/psalm
@@ -121,12 +121,17 @@ if (isset($options['i'])) {
             $level = (int)$args[1];
         }
 
-        if (!file_exists($args[0])) {
-            $bad_dir_path = getcwd() . DIRECTORY_SEPARATOR . $args[0];
-            die('The given path ' . $bad_dir_path . ' does not appear to be a directory' . PHP_EOL);
+        $source_dir = $args[0];
+    }
+
+    if (!is_dir($source_dir)) {
+        $bad_dir_path = getcwd() . DIRECTORY_SEPARATOR . $source_dir;
+
+        if (!isset($args[0])) {
+            die('Please specify a directory - the default, "src", was not found in this project.' . PHP_EOL);
         }
 
-        $source_dir = $args[0];
+        die('The given path "' . $bad_dir_path . '" does not appear to be a directory' . PHP_EOL);
     }
 
     $template_file_name = 'assets/config_levels/' . $level . '.xml';
diff --git a/examples/psalm.default.xml b/examples/psalm.default.xml
deleted file mode 100644
index 2f585c723..000000000
--- a/examples/psalm.default.xml
+++ /dev/null
@@ -1,21 +0,0 @@
-<?xml version="1.0"?>
-<psalm
-    name="Example Psalm config with recommended defaults"
-    stopOnFirstError="false"
-    useDocblockTypes="true"
-    totallyTyped="false"
->
-    <projectFiles>
-        <directory name="src" />
-    </projectFiles>
-
-    <issueHandlers>
-        <InvalidDocblock errorLevel="info" />
-        <MissingClosureReturnType errorLevel="suppress" />
-        <MissingPropertyType errorLevel="info" />
-        <MissingReturnType errorLevel="info" />
-        <DeprecatedMethod errorLevel="info" />
-        <PossiblyUndefinedVariable errorLevel="info" />
-        <FailedTypeResolution errorLevel="info" />
-    </issueHandlers>
-</psalm>