Seal all air leaks. If you have air leaks, installing insulation will not help hold in heat or save money. Check for air leaks around exterior walls, vents and pipes. You can use caulking to seal most cracks. This should be done prior to installing the vapor barrier.
After you have sealed all air leaks, install a vapor barrier. Place a thin sheet of plastic along the attic floor. This will prevent moisture from entering the attic space. You can staple it down to the framing lumber. The vapor barrier in the most important part of the attic maintenance.
Place insulation between the framing lumber on the floor and walls. Insulation comes in rolls and can also be blown into place. When adding insulation, never cover up electrical wires or junction boxes due to fire hazard. Insulation is laid directly on top of the vapor barrier.