diff --git a/leggen/commands/generate_sample_db.py b/leggen/commands/generate_sample_db.py
new file mode 100644
index 0000000..3dc9ea0
--- /dev/null
+++ b/leggen/commands/generate_sample_db.py
@@ -0,0 +1,65 @@
+"""Generate sample database command."""
+
+import click
+from pathlib import Path
+
+from leggen.utils.paths import path_manager
+
+
+@click.command()
+@click.option(
+    "--database",
+    type=click.Path(path_type=Path),
+    help="Path to database file (default: uses LEGGEN_DATABASE_PATH or ~/.config/leggen/leggen-dev.db)",
+)
+@click.option(
+    "--accounts",
+    type=int,
+    default=3,
+    help="Number of sample accounts to generate (default: 3)",
+)
+@click.option(
+    "--transactions",
+    type=int,
+    default=50,
+    help="Number of transactions per account (default: 50)",
+)
+@click.option(
+    "--force",
+    is_flag=True,
+    help="Overwrite existing database without confirmation",
+)
+@click.pass_context
+def generate_sample_db(ctx: click.Context, database: Path, accounts: int, transactions: int, force: bool):
+    """Generate a sample database with realistic financial data for testing."""
+    
+    # Import here to avoid circular imports
+    import sys
+    import subprocess
+    from pathlib import Path as PathlibPath
+    
+    # Get the script path
+    script_path = PathlibPath(__file__).parent.parent.parent / "scripts" / "generate_sample_db.py"
+    
+    # Build command arguments
+    cmd = [sys.executable, str(script_path)]
+    
+    if database:
+        cmd.extend(["--database", str(database)])
+    
+    cmd.extend(["--accounts", str(accounts)])
+    cmd.extend(["--transactions", str(transactions)])
+    
+    if force:
+        cmd.append("--force")
+    
+    # Execute the script
+    try:
+        subprocess.run(cmd, check=True)
+    except subprocess.CalledProcessError as e:
+        click.echo(f"Error generating sample database: {e}")
+        ctx.exit(1)
+
+
+# Export the command
+generate_sample_db = generate_sample_db
\ No newline at end of file
diff --git a/leggen/database/sqlite.py b/leggen/database/sqlite.py
index d71ad65..744302a 100644
--- a/leggen/database/sqlite.py
+++ b/leggen/database/sqlite.py
@@ -5,14 +5,13 @@ from sqlite3 import IntegrityError
 import click
 
 from leggen.utils.text import success, warning
+from leggen.utils.paths import path_manager
 
 
 def persist_balances(ctx: click.Context, balance: dict):
     # Connect to SQLite database
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
-    db_path.parent.mkdir(parents=True, exist_ok=True)
+    db_path = path_manager.get_database_path()
+    path_manager.ensure_database_dir_exists()
     conn = sqlite3.connect(str(db_path))
     cursor = conn.cursor()
 
@@ -108,10 +107,8 @@ def persist_balances(ctx: click.Context, balance: dict):
 
 def persist_transactions(ctx: click.Context, account: str, transactions: list) -> list:
     # Connect to SQLite database
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
-    db_path.parent.mkdir(parents=True, exist_ok=True)
+    db_path = path_manager.get_database_path()
+    path_manager.ensure_database_dir_exists()
     conn = sqlite3.connect(str(db_path))
     cursor = conn.cursor()
 
@@ -216,9 +213,7 @@ def get_transactions(
     search=None,
 ):
     """Get transactions from SQLite database with optional filtering"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+    db_path = path_manager.get_database_path()
     if not db_path.exists():
         return []
     conn = sqlite3.connect(str(db_path))
@@ -288,9 +283,7 @@ def get_transactions(
 
 def get_balances(account_id=None):
     """Get latest balances from SQLite database"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+    db_path = path_manager.get_database_path()
     if not db_path.exists():
         return []
     conn = sqlite3.connect(str(db_path))
@@ -329,9 +322,7 @@ def get_balances(account_id=None):
 
 def get_account_summary(account_id):
     """Get basic account info from transactions table (avoids GoCardless API call)"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+    db_path = path_manager.get_database_path()
     if not db_path.exists():
         return None
     conn = sqlite3.connect(str(db_path))
@@ -365,9 +356,7 @@ def get_account_summary(account_id):
 
 def get_transaction_count(account_id=None, **filters):
     """Get total count of transactions matching filters"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+    db_path = path_manager.get_database_path()
     if not db_path.exists():
         return 0
     conn = sqlite3.connect(str(db_path))
@@ -414,10 +403,8 @@ def get_transaction_count(account_id=None, **filters):
 
 def persist_account(account_data: dict):
     """Persist account details to SQLite database"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
-    db_path.parent.mkdir(parents=True, exist_ok=True)
+    db_path = path_manager.get_database_path()
+    path_manager.ensure_database_dir_exists()
     conn = sqlite3.connect(str(db_path))
     cursor = conn.cursor()
 
@@ -485,9 +472,7 @@ def persist_account(account_data: dict):
 
 def get_accounts(account_ids=None):
     """Get account details from SQLite database"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+    db_path = path_manager.get_database_path()
     if not db_path.exists():
         return []
     conn = sqlite3.connect(str(db_path))
@@ -519,9 +504,7 @@ def get_accounts(account_ids=None):
 
 def get_account(account_id: str):
     """Get specific account details from SQLite database"""
-    from pathlib import Path
-
-    db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+    db_path = path_manager.get_database_path()
     if not db_path.exists():
         return None
     conn = sqlite3.connect(str(db_path))
diff --git a/leggen/main.py b/leggen/main.py
index de195e5..9bfa692 100644
--- a/leggen/main.py
+++ b/leggen/main.py
@@ -7,6 +7,7 @@ import click
 
 from leggen.utils.config import load_config
 from leggen.utils.text import error
+from leggen.utils.paths import path_manager
 
 cmd_folder = os.path.abspath(os.path.join(os.path.dirname(__file__), "commands"))
 
@@ -77,7 +78,7 @@ class Group(click.Group):
     "-c",
     "--config",
     type=click.Path(dir_okay=False),
-    default=Path.home() / ".config" / "leggen" / "config.toml",
+    default=lambda: str(path_manager.get_config_file_path()),
     show_default=True,
     callback=load_config,
     is_eager=True,
@@ -86,6 +87,20 @@ class Group(click.Group):
     show_envvar=True,
     help="Path to TOML configuration file",
 )
+@click.option(
+    "--config-dir",
+    type=click.Path(exists=False, file_okay=False, path_type=Path),
+    envvar="LEGGEN_CONFIG_DIR",
+    show_envvar=True,
+    help="Directory containing configuration files (default: ~/.config/leggen)",
+)
+@click.option(
+    "--database",
+    type=click.Path(dir_okay=False, path_type=Path),
+    envvar="LEGGEN_DATABASE_PATH",
+    show_envvar=True,
+    help="Path to SQLite database file (default: <config-dir>/leggen.db)",
+)
 @click.option(
     "--api-url",
     type=str,
@@ -100,7 +115,7 @@ class Group(click.Group):
 )
 @click.version_option(package_name="leggen")
 @click.pass_context
-def cli(ctx: click.Context, api_url: str):
+def cli(ctx: click.Context, config_dir: Path, database: Path, api_url: str):
     """
     Leggen: An Open Banking CLI
     """
@@ -109,5 +124,11 @@ def cli(ctx: click.Context, api_url: str):
     if "--help" in sys.argv[1:] or "-h" in sys.argv[1:]:
         return
 
+    # Set up path manager with user-provided paths
+    if config_dir:
+        path_manager.set_config_dir(config_dir)
+    if database:
+        path_manager.set_database_path(database)
+
     # Store API URL in context for commands to use
     ctx.obj["api_url"] = api_url
diff --git a/leggen/utils/paths.py b/leggen/utils/paths.py
new file mode 100644
index 0000000..40241eb
--- /dev/null
+++ b/leggen/utils/paths.py
@@ -0,0 +1,67 @@
+"""Centralized path management for Leggen."""
+
+import os
+from pathlib import Path
+from typing import Optional
+
+
+class PathManager:
+    """Manages configurable paths for config and database files."""
+    
+    def __init__(self):
+        self._config_dir: Optional[Path] = None
+        self._database_path: Optional[Path] = None
+    
+    def get_config_dir(self) -> Path:
+        """Get the configuration directory."""
+        if self._config_dir is not None:
+            return self._config_dir
+        
+        # Check environment variable first
+        config_dir = os.environ.get("LEGGEN_CONFIG_DIR")
+        if config_dir:
+            return Path(config_dir)
+        
+        # Default to ~/.config/leggen
+        return Path.home() / ".config" / "leggen"
+    
+    def set_config_dir(self, path: Path) -> None:
+        """Set the configuration directory."""
+        self._config_dir = Path(path)
+    
+    def get_config_file_path(self) -> Path:
+        """Get the configuration file path."""
+        return self.get_config_dir() / "config.toml"
+    
+    def get_database_path(self) -> Path:
+        """Get the database file path."""
+        if self._database_path is not None:
+            return self._database_path
+        
+        # Check environment variable first
+        database_path = os.environ.get("LEGGEN_DATABASE_PATH")
+        if database_path:
+            return Path(database_path)
+        
+        # Default to config_dir/leggen.db
+        return self.get_config_dir() / "leggen.db"
+    
+    def set_database_path(self, path: Path) -> None:
+        """Set the database file path."""
+        self._database_path = Path(path)
+    
+    def get_auth_file_path(self) -> Path:
+        """Get the authentication file path."""
+        return self.get_config_dir() / "auth.json"
+    
+    def ensure_config_dir_exists(self) -> None:
+        """Ensure the configuration directory exists."""
+        self.get_config_dir().mkdir(parents=True, exist_ok=True)
+    
+    def ensure_database_dir_exists(self) -> None:
+        """Ensure the database directory exists."""
+        self.get_database_path().parent.mkdir(parents=True, exist_ok=True)
+
+
+# Global instance for the application
+path_manager = PathManager()
\ No newline at end of file
diff --git a/leggend/config.py b/leggend/config.py
index 336434e..662c0ef 100644
--- a/leggend/config.py
+++ b/leggend/config.py
@@ -5,6 +5,7 @@ from pathlib import Path
 from typing import Dict, Any, Optional
 
 from loguru import logger
+from leggen.utils.paths import path_manager
 
 
 class Config:
@@ -23,9 +24,10 @@ class Config:
 
         if config_path is None:
             config_path = os.environ.get(
-                "LEGGEN_CONFIG_FILE",
-                str(Path.home() / ".config" / "leggen" / "config.toml"),
+                "LEGGEN_CONFIG_FILE"
             )
+            if not config_path:
+                config_path = str(path_manager.get_config_file_path())
 
         self._config_path = config_path
 
@@ -53,9 +55,10 @@ class Config:
 
         if config_path is None:
             config_path = self._config_path or os.environ.get(
-                "LEGGEN_CONFIG_FILE",
-                str(Path.home() / ".config" / "leggen" / "config.toml"),
+                "LEGGEN_CONFIG_FILE"
             )
+            if not config_path:
+                config_path = str(path_manager.get_config_file_path())
 
         if config_path is None:
             raise ValueError("No config path specified")
diff --git a/leggend/main.py b/leggend/main.py
index 30b2a2c..33c3544 100644
--- a/leggend/main.py
+++ b/leggend/main.py
@@ -121,6 +121,8 @@ def create_app() -> FastAPI:
 
 def main():
     import argparse
+    from pathlib import Path
+    from leggen.utils.paths import path_manager
 
     parser = argparse.ArgumentParser(description="Start the Leggend API service")
     parser.add_argument(
@@ -132,8 +134,24 @@ def main():
     parser.add_argument(
         "--port", type=int, default=8000, help="Port to bind to (default: 8000)"
     )
+    parser.add_argument(
+        "--config-dir",
+        type=Path,
+        help="Directory containing configuration files (default: ~/.config/leggen)",
+    )
+    parser.add_argument(
+        "--database",
+        type=Path,
+        help="Path to SQLite database file (default: <config-dir>/leggen.db)",
+    )
     args = parser.parse_args()
 
+    # Set up path manager with user-provided paths
+    if args.config_dir:
+        path_manager.set_config_dir(args.config_dir)
+    if args.database:
+        path_manager.set_database_path(args.database)
+
     if args.reload:
         # Use string import for reload to work properly
         uvicorn.run(
diff --git a/leggend/services/database_service.py b/leggend/services/database_service.py
index df0bd17..4edf192 100644
--- a/leggend/services/database_service.py
+++ b/leggend/services/database_service.py
@@ -6,6 +6,7 @@ from loguru import logger
 
 from leggend.config import config
 import leggen.database.sqlite as sqlite_db
+from leggen.utils.paths import path_manager
 
 
 class DatabaseService:
@@ -280,9 +281,7 @@ class DatabaseService:
 
     async def _check_balance_timestamp_migration_needed(self) -> bool:
         """Check if balance timestamps need migration"""
-        from pathlib import Path
-
-        db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+        db_path = path_manager.get_database_path()
         if not db_path.exists():
             return False
 
@@ -310,9 +309,7 @@ class DatabaseService:
 
     async def _migrate_balance_timestamps(self):
         """Convert all Unix timestamps to datetime strings"""
-        from pathlib import Path
-
-        db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+        db_path = path_manager.get_database_path()
         if not db_path.exists():
             logger.warning("Database file not found, skipping migration")
             return
@@ -399,9 +396,7 @@ class DatabaseService:
 
     async def _check_null_transaction_ids_migration_needed(self) -> bool:
         """Check if null transaction IDs need migration"""
-        from pathlib import Path
-
-        db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+        db_path = path_manager.get_database_path()
         if not db_path.exists():
             return False
 
@@ -429,9 +424,8 @@ class DatabaseService:
     async def _migrate_null_transaction_ids(self):
         """Populate null internalTransactionId fields using transactionId from raw data"""
         import uuid
-        from pathlib import Path
-
-        db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+        
+        db_path = path_manager.get_database_path()
         if not db_path.exists():
             logger.warning("Database file not found, skipping migration")
             return
@@ -538,9 +532,7 @@ class DatabaseService:
 
     async def _check_composite_key_migration_needed(self) -> bool:
         """Check if composite key migration is needed"""
-        from pathlib import Path
-
-        db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+        db_path = path_manager.get_database_path()
         if not db_path.exists():
             return False
 
@@ -586,9 +578,7 @@ class DatabaseService:
 
     async def _migrate_to_composite_key(self):
         """Migrate transactions table to use composite primary key (accountId, transactionId)"""
-        from pathlib import Path
-
-        db_path = Path.home() / ".config" / "leggen" / "leggen.db"
+        db_path = path_manager.get_database_path()
         if not db_path.exists():
             logger.warning("Database file not found, skipping migration")
             return
@@ -704,10 +694,8 @@ class DatabaseService:
         try:
             import sqlite3
 
-            from pathlib import Path
-
-            db_path = Path.home() / ".config" / "leggen" / "leggen.db"
-            db_path.parent.mkdir(parents=True, exist_ok=True)
+            db_path = path_manager.get_database_path()
+            path_manager.ensure_database_dir_exists()
             conn = sqlite3.connect(str(db_path))
             cursor = conn.cursor()
 
@@ -786,10 +774,8 @@ class DatabaseService:
             import sqlite3
             import json
 
-            from pathlib import Path
-
-            db_path = Path.home() / ".config" / "leggen" / "leggen.db"
-            db_path.parent.mkdir(parents=True, exist_ok=True)
+            db_path = path_manager.get_database_path()
+            path_manager.ensure_database_dir_exists()
             conn = sqlite3.connect(str(db_path))
             cursor = conn.cursor()
 
@@ -888,10 +874,7 @@ class DatabaseService:
     ) -> None:
         """Persist account details to SQLite"""
         try:
-            from pathlib import Path
-
-            db_path = Path.home() / ".config" / "leggen" / "leggen.db"
-            db_path.parent.mkdir(parents=True, exist_ok=True)
+            path_manager.ensure_database_dir_exists()
 
             # Use the sqlite_db module function
             sqlite_db.persist_account(account_data)
diff --git a/leggend/services/gocardless_service.py b/leggend/services/gocardless_service.py
index 4382f61..58afecb 100644
--- a/leggend/services/gocardless_service.py
+++ b/leggend/services/gocardless_service.py
@@ -6,6 +6,7 @@ from typing import Dict, Any, List
 from loguru import logger
 
 from leggend.config import config
+from leggen.utils.paths import path_manager
 
 
 def _log_rate_limits(response):
@@ -39,8 +40,8 @@ class GoCardlessService:
         if self._token:
             return self._token
 
-        # Use ~/.config/leggen for consistency with main config
-        auth_file = Path.home() / ".config" / "leggen" / "auth.json"
+        # Use path manager for auth file
+        auth_file = path_manager.get_auth_file_path()
 
         if auth_file.exists():
             try:
diff --git a/scripts/generate_sample_db.py b/scripts/generate_sample_db.py
new file mode 100755
index 0000000..51bfba3
--- /dev/null
+++ b/scripts/generate_sample_db.py
@@ -0,0 +1,426 @@
+#!/usr/bin/env python3
+"""Sample database generator for Leggen testing and development."""
+
+import argparse
+import json
+import random
+import sqlite3
+import sys
+import os
+from datetime import datetime, timedelta
+from pathlib import Path
+from typing import List, Dict, Any
+
+# Add the project root to the Python path
+project_root = Path(__file__).parent.parent
+sys.path.insert(0, str(project_root))
+
+import click
+from leggen.utils.paths import path_manager
+
+
+class SampleDataGenerator:
+    """Generates realistic sample data for testing Leggen."""
+
+    def __init__(self, db_path: Path):
+        self.db_path = db_path
+        self.institutions = [
+            {
+                "id": "REVOLUT_REVOLT21",
+                "name": "Revolut",
+                "bic": "REVOLT21",
+                "country": "LT",
+            },
+            {
+                "id": "BANCOBPI_BBPIPTPL", 
+                "name": "Banco BPI",
+                "bic": "BBPIPTPL",
+                "country": "PT",
+            },
+            {
+                "id": "MONZO_MONZGB2L",
+                "name": "Monzo Bank",
+                "bic": "MONZGB2L", 
+                "country": "GB",
+            },
+            {
+                "id": "NUBANK_NUPBBR25",
+                "name": "Nu Pagamentos",
+                "bic": "NUPBBR25",
+                "country": "BR",
+            },
+        ]
+        
+        self.transaction_types = [
+            {"description": "Grocery Store", "amount_range": (-150, -20), "frequency": 0.3},
+            {"description": "Coffee Shop", "amount_range": (-15, -3), "frequency": 0.2},
+            {"description": "Gas Station", "amount_range": (-80, -30), "frequency": 0.1},
+            {"description": "Online Shopping", "amount_range": (-200, -25), "frequency": 0.15},
+            {"description": "Restaurant", "amount_range": (-60, -15), "frequency": 0.15},
+            {"description": "Salary", "amount_range": (2500, 5000), "frequency": 0.02},
+            {"description": "ATM Withdrawal", "amount_range": (-200, -20), "frequency": 0.05},
+            {"description": "Transfer to Savings", "amount_range": (-1000, -100), "frequency": 0.03},
+        ]
+
+    def ensure_database_dir(self):
+        """Ensure database directory exists."""
+        self.db_path.parent.mkdir(parents=True, exist_ok=True)
+
+    def create_tables(self):
+        """Create database tables."""
+        conn = sqlite3.connect(str(self.db_path))
+        cursor = conn.cursor()
+
+        # Create accounts table
+        cursor.execute("""
+            CREATE TABLE IF NOT EXISTS accounts (
+                id TEXT PRIMARY KEY,
+                institution_id TEXT,
+                status TEXT,
+                iban TEXT,
+                name TEXT,
+                currency TEXT,
+                created DATETIME,
+                last_accessed DATETIME,
+                last_updated DATETIME
+            )
+        """)
+
+        # Create transactions table with composite primary key
+        cursor.execute("""
+            CREATE TABLE IF NOT EXISTS transactions (
+                accountId TEXT NOT NULL,
+                transactionId TEXT NOT NULL,
+                internalTransactionId TEXT,
+                institutionId TEXT,
+                iban TEXT,
+                transactionDate DATETIME,
+                description TEXT,
+                transactionValue REAL,
+                transactionCurrency TEXT,
+                transactionStatus TEXT,
+                rawTransaction JSON,
+                PRIMARY KEY (accountId, transactionId)
+            )
+        """)
+
+        # Create balances table
+        cursor.execute("""
+            CREATE TABLE IF NOT EXISTS balances (
+                id INTEGER PRIMARY KEY AUTOINCREMENT,
+                account_id TEXT,
+                bank TEXT,
+                status TEXT,
+                iban TEXT,
+                amount REAL,
+                currency TEXT,
+                type TEXT,
+                timestamp DATETIME
+            )
+        """)
+
+        # Create indexes
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_transactions_internal_id ON transactions(internalTransactionId)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_transactions_date ON transactions(transactionDate)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_transactions_account_date ON transactions(accountId, transactionDate)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_transactions_amount ON transactions(transactionValue)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_balances_account_id ON balances(account_id)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_balances_timestamp ON balances(timestamp)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_balances_account_type_timestamp ON balances(account_id, type, timestamp)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_accounts_institution_id ON accounts(institution_id)")
+        cursor.execute("CREATE INDEX IF NOT EXISTS idx_accounts_status ON accounts(status)")
+
+        conn.commit()
+        conn.close()
+
+    def generate_iban(self, country_code: str) -> str:
+        """Generate a realistic IBAN for the given country."""
+        ibans = {
+            "LT": lambda: f"LT{random.randint(10, 99)}{random.randint(10000, 99999)}{random.randint(10000000, 99999999)}",
+            "PT": lambda: f"PT{random.randint(10, 99)}{random.randint(1000, 9999)}{random.randint(1000, 9999)}{random.randint(10000000000, 99999999999)}",
+            "GB": lambda: f"GB{random.randint(10, 99)}MONZ{random.randint(100000, 999999)}{random.randint(100000, 999999)}",
+            "BR": lambda: f"BR{random.randint(10, 99)}{random.randint(10000000, 99999999)}{random.randint(1000, 9999)}{random.randint(10000000, 99999999)}",
+        }
+        return ibans.get(country_code, lambda: f"{country_code}{random.randint(1000000000000000, 9999999999999999)}")()
+
+    def generate_accounts(self, num_accounts: int = 3) -> List[Dict[str, Any]]:
+        """Generate sample accounts."""
+        accounts = []
+        base_date = datetime.now() - timedelta(days=90)
+        
+        for i in range(num_accounts):
+            institution = random.choice(self.institutions)
+            account_id = f"account-{i+1:03d}-{random.randint(1000, 9999)}"
+            
+            account = {
+                "id": account_id,
+                "institution_id": institution["id"],
+                "status": "READY",
+                "iban": self.generate_iban(institution["country"]),
+                "name": f"Personal Account {i+1}",
+                "currency": "EUR",
+                "created": (base_date + timedelta(days=random.randint(0, 30))).isoformat(),
+                "last_accessed": (datetime.now() - timedelta(hours=random.randint(1, 48))).isoformat(),
+                "last_updated": datetime.now().isoformat(),
+            }
+            accounts.append(account)
+        
+        return accounts
+
+    def generate_transactions(self, accounts: List[Dict[str, Any]], num_transactions_per_account: int = 50) -> List[Dict[str, Any]]:
+        """Generate sample transactions for accounts."""
+        transactions = []
+        base_date = datetime.now() - timedelta(days=60)
+        
+        for account in accounts:
+            account_transactions = []
+            current_balance = random.uniform(500, 3000)
+            
+            for i in range(num_transactions_per_account):
+                # Choose transaction type based on frequency weights
+                transaction_type = random.choices(
+                    self.transaction_types,
+                    weights=[t["frequency"] for t in self.transaction_types]
+                )[0]
+                
+                # Generate transaction amount
+                min_amount, max_amount = transaction_type["amount_range"]
+                amount = round(random.uniform(min_amount, max_amount), 2)
+                
+                # Generate transaction date (more recent transactions are more likely)
+                days_ago = random.choices(
+                    range(60),
+                    weights=[1.5 ** (60 - d) for d in range(60)]
+                )[0]
+                transaction_date = base_date + timedelta(days=days_ago, hours=random.randint(6, 22), minutes=random.randint(0, 59))
+                
+                # Generate transaction IDs
+                transaction_id = f"bank-txn-{account['id']}-{i+1:04d}"
+                internal_transaction_id = f"int-txn-{random.randint(100000, 999999)}"
+                
+                # Create realistic descriptions
+                descriptions = {
+                    "Grocery Store": ["TESCO", "SAINSBURY'S", "LIDL", "ALDI", "WALMART", "CARREFOUR"],
+                    "Coffee Shop": ["STARBUCKS", "COSTA COFFEE", "PRET A MANGER", "LOCAL CAFE"],
+                    "Gas Station": ["BP", "SHELL", "ESSO", "GALP", "PETROBRAS"],
+                    "Online Shopping": ["AMAZON", "EBAY", "ZALANDO", "ASOS", "APPLE"],
+                    "Restaurant": ["PIZZA HUT", "MCDONALD'S", "BURGER KING", "LOCAL RESTAURANT"],
+                    "Salary": ["MONTHLY SALARY", "PAYROLL DEPOSIT", "SALARY PAYMENT"],
+                    "ATM Withdrawal": ["ATM WITHDRAWAL", "CASH WITHDRAWAL"],
+                    "Transfer to Savings": ["SAVINGS TRANSFER", "INVESTMENT TRANSFER"],
+                }
+                
+                specific_descriptions = descriptions.get(transaction_type["description"], [transaction_type["description"]])
+                description = random.choice(specific_descriptions)
+                
+                # Create raw transaction (simplified GoCardless format)
+                raw_transaction = {
+                    "transactionId": transaction_id,
+                    "bookingDate": transaction_date.strftime("%Y-%m-%d"),
+                    "valueDate": transaction_date.strftime("%Y-%m-%d"),
+                    "transactionAmount": {
+                        "amount": str(amount),
+                        "currency": account["currency"]
+                    },
+                    "remittanceInformationUnstructured": description,
+                    "bankTransactionCode": "PMNT" if amount < 0 else "RCDT",
+                }
+                
+                # Determine status (most are booked, some recent ones might be pending)
+                status = "pending" if days_ago < 2 and random.random() < 0.1 else "booked"
+                
+                transaction = {
+                    "accountId": account["id"],
+                    "transactionId": transaction_id,
+                    "internalTransactionId": internal_transaction_id,
+                    "institutionId": account["institution_id"],
+                    "iban": account["iban"],
+                    "transactionDate": transaction_date.isoformat(),
+                    "description": description,
+                    "transactionValue": amount,
+                    "transactionCurrency": account["currency"],
+                    "transactionStatus": status,
+                    "rawTransaction": raw_transaction,
+                }
+                
+                account_transactions.append(transaction)
+                current_balance += amount
+            
+            # Sort transactions by date for realistic ordering
+            account_transactions.sort(key=lambda x: x["transactionDate"])
+            transactions.extend(account_transactions)
+        
+        return transactions
+
+    def generate_balances(self, accounts: List[Dict[str, Any]]) -> List[Dict[str, Any]]:
+        """Generate sample balances for accounts."""
+        balances = []
+        
+        for account in accounts:
+            # Calculate balance from transactions (simplified)
+            base_balance = random.uniform(500, 2000)
+            
+            balance_types = ["interimAvailable", "closingBooked", "authorised"]
+            
+            for balance_type in balance_types:
+                # Add some variation to balance types
+                variation = random.uniform(-50, 50) if balance_type != "interimAvailable" else 0
+                balance_amount = base_balance + variation
+                
+                balance = {
+                    "account_id": account["id"],
+                    "bank": account["institution_id"],
+                    "status": account["status"],
+                    "iban": account["iban"],
+                    "amount": round(balance_amount, 2),
+                    "currency": account["currency"],
+                    "type": balance_type,
+                    "timestamp": datetime.now().isoformat(),
+                }
+                balances.append(balance)
+        
+        return balances
+
+    def insert_data(self, accounts: List[Dict[str, Any]], transactions: List[Dict[str, Any]], balances: List[Dict[str, Any]]):
+        """Insert generated data into the database."""
+        conn = sqlite3.connect(str(self.db_path))
+        cursor = conn.cursor()
+
+        # Insert accounts
+        for account in accounts:
+            cursor.execute("""
+                INSERT OR REPLACE INTO accounts 
+                (id, institution_id, status, iban, name, currency, created, last_accessed, last_updated)
+                VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?)
+            """, (
+                account["id"], account["institution_id"], account["status"], account["iban"],
+                account["name"], account["currency"], account["created"], 
+                account["last_accessed"], account["last_updated"]
+            ))
+
+        # Insert transactions
+        for transaction in transactions:
+            cursor.execute("""
+                INSERT OR REPLACE INTO transactions 
+                (accountId, transactionId, internalTransactionId, institutionId, iban, 
+                 transactionDate, description, transactionValue, transactionCurrency, 
+                 transactionStatus, rawTransaction)
+                VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?, ?, ?)
+            """, (
+                transaction["accountId"], transaction["transactionId"], 
+                transaction["internalTransactionId"], transaction["institutionId"],
+                transaction["iban"], transaction["transactionDate"], transaction["description"],
+                transaction["transactionValue"], transaction["transactionCurrency"],
+                transaction["transactionStatus"], json.dumps(transaction["rawTransaction"])
+            ))
+
+        # Insert balances
+        for balance in balances:
+            cursor.execute("""
+                INSERT INTO balances 
+                (account_id, bank, status, iban, amount, currency, type, timestamp)
+                VALUES (?, ?, ?, ?, ?, ?, ?, ?)
+            """, (
+                balance["account_id"], balance["bank"], balance["status"], balance["iban"],
+                balance["amount"], balance["currency"], balance["type"], balance["timestamp"]
+            ))
+
+        conn.commit()
+        conn.close()
+
+    def generate_sample_database(self, num_accounts: int = 3, num_transactions_per_account: int = 50):
+        """Generate complete sample database."""
+        click.echo(f"🗄️  Creating sample database at: {self.db_path}")
+        
+        self.ensure_database_dir()
+        self.create_tables()
+        
+        click.echo(f"👥 Generating {num_accounts} sample accounts...")
+        accounts = self.generate_accounts(num_accounts)
+        
+        click.echo(f"💳 Generating {num_transactions_per_account} transactions per account...")
+        transactions = self.generate_transactions(accounts, num_transactions_per_account)
+        
+        click.echo("💰 Generating account balances...")
+        balances = self.generate_balances(accounts)
+        
+        click.echo("💾 Inserting data into database...")
+        self.insert_data(accounts, transactions, balances)
+        
+        # Print summary
+        click.echo("\n✅ Sample database created successfully!")
+        click.echo(f"📊 Summary:")
+        click.echo(f"   - Accounts: {len(accounts)}")
+        click.echo(f"   - Transactions: {len(transactions)}")
+        click.echo(f"   - Balances: {len(balances)}")
+        click.echo(f"   - Database: {self.db_path}")
+        
+        # Show account details
+        click.echo(f"\n📋 Sample accounts:")
+        for account in accounts:
+            institution_name = next(inst["name"] for inst in self.institutions if inst["id"] == account["institution_id"])
+            click.echo(f"   - {account['id']} ({institution_name}) - {account['iban']}")
+
+
+@click.command()
+@click.option(
+    "--database",
+    type=click.Path(path_type=Path),
+    help="Path to database file (default: uses LEGGEN_DATABASE_PATH or ~/.config/leggen/leggen-dev.db)",
+)
+@click.option(
+    "--accounts",
+    type=int,
+    default=3,
+    help="Number of sample accounts to generate (default: 3)",
+)
+@click.option(
+    "--transactions",
+    type=int,
+    default=50,
+    help="Number of transactions per account (default: 50)",
+)
+@click.option(
+    "--force",
+    is_flag=True,
+    help="Overwrite existing database without confirmation",
+)
+def main(database: Path, accounts: int, transactions: int, force: bool):
+    """Generate a sample database with realistic financial data for testing Leggen."""
+    
+    # Determine database path
+    if database:
+        db_path = database
+    else:
+        # Use development database by default to avoid overwriting production data
+        import os
+        env_path = os.environ.get("LEGGEN_DATABASE_PATH")
+        if env_path:
+            db_path = Path(env_path)
+        else:
+            # Default to development database in config directory
+            db_path = path_manager.get_config_dir() / "leggen-dev.db"
+    
+    # Check if database exists and ask for confirmation
+    if db_path.exists() and not force:
+        click.echo(f"⚠️  Database already exists: {db_path}")
+        if not click.confirm("Do you want to overwrite it?"):
+            click.echo("Aborted.")
+            return
+    
+    # Generate the sample database
+    generator = SampleDataGenerator(db_path)
+    generator.generate_sample_database(accounts, transactions)
+    
+    # Show usage instructions
+    click.echo(f"\n🚀 Usage instructions:")
+    click.echo(f"To use this sample database with leggen commands:")
+    click.echo(f"   export LEGGEN_DATABASE_PATH={db_path}")
+    click.echo(f"   leggen transactions")
+    click.echo(f"")
+    click.echo(f"To use this sample database with leggend API:")
+    click.echo(f"   leggend --database {db_path}")
+
+
+if __name__ == "__main__":
+    main()
\ No newline at end of file