Measure the first exterior wall from bottom to top, next to the exposed studs.
Cut a piece of thermal fiberglass insulation to that length. Make the cut by rolling out a strip of the insulation on the floor, laying the tape measure next to it opened to the correct setting, laying a level over the insulation width-wise at the measurement and cutting the insulation alongside the level with a utility knife.
Push the cut strip of insulation between the first two studs, filling the space from top to bottom and side to side. Hang it so the side of the insulation that's covered with paper or foil faces out into the room.
Secure the insulation in place by shooting staples up and down the length of the piece into the sides of the studs on either side. Use about one staple per foot.
Cut the insulation back around any electrical sockets or other obstructions in the wall.
Repeat the process for the space between each set of studs on each exterior wall. Drywall will go over the insulation.