Decide if you want to go fully wired, fully wireless, or a hybrid of the two.
Install the main alarm component in a closet or someplace inconspicuous.
Install a key pad close to each outside door. If wired, run wires to the main alarm panel.
Install a open/close sensor on each door and window. If wired, run a wire for each back to the main alarm panel.
Install motion sensors throughout the house to catch anybody moving in the house who didn't set off one of the other perimiter alarms. Make sure your coverage doesn't have holes large enough for someone to make their way through most of the house without being detected.
If wired, wire up each component to the control panel and write down which component is connected to each input.
Consult your alarm instructions for information on how to program the system.
Set up a "home" armed mode that arms only the perimiter sensors (windows/doors).
Set up an "away" armed mode that arms every sensor (windows/doors/motion).
Set up monitoring with a company that will be alerted if your alarm goes off. Burgler alarms cannot be set up to alert police directly.