Locate a rigid, pointed implement at least 5 inches long and 1/2 inch in diameter, like a tent stake or garden rake. Core lawn aerators are also available for rent at many home improvement and gardening stores for quicker aeration. These aerators look much like a big wheel with spokes on the ends. Core aerators actually remove a piece of dirt during aeration, while using a pointed instrument just pushes dirt aside. Both methods are effective, though core aeration requires fewer holes.
Stab your ground with the pointed object, plunging the pointed implement about 2 to 3 inches into the ground perpendicular to the slope of your lawn. Place holes in your lawn at 3-inch intervals for good aeration. This process is time consuming, but it may be worth the effort when you consider the cost of renting an aerator or hiring a professional. If you're using a core lawn aerating unit, roll it across the lawn's surface, much like a push lawn-mower. The core aerator will make holes at appropriately-spaced intervals you push.
Water your lawn as usual.
Touch the soil one week later to ensure the aeration worked well. Most grasses prefer moderately-wet conditions, so the surface should be just barely moist, but you should be able to feel increasing wetness as you stick your finger into one of the 2- to 3-inch holes you made in the soil. If your lawn is too wet, add more aeration holes. If the lawn is too dry, you need to add more loam or peat soil to the top of the lawn to help fill in existing aeration holes.