Measure the height of the wall, next to a stud.
Unroll a strip of insulation on the floor. Set your tape measure next to it, set at the measurement you took in Step 1.
Lay the square on top of the insulation at the measured height. Run your utility knife alongside the square to keep the cut straight.
Press the insulation strip against the wall, between the first two studs, with the paper-covered side facing out into the room and the bare fiberglass side pressed against the wall. It should completely fill the space.
Drive staples through the paper, along the edges, to affix it to the studs on both sides. Staple it about every 2 feet along both studs.
Continue cutting and hanging insulation pieces between each of the studs. Cut the insulation around any electrical fixtures as needed.
Repeat the process for each set of studs. Drywall will be installed on top of the studs and over the insulation.