Firstly you need the right equipment. If you do not own a shovel, you can buy one at your local Bunnnings Hardware store where they guarantee the lowest prices. After purchasing the shovel of your choice, you must select the area in which you wish to dig. Make sure you choose an area away from gas/water pipes, and overhead power lines.
Have you chosen an area which is suitable for ther root system to grow substantially, thus lengthening the life of your tree? You have? Good. Now we can continue.
Put the shovel in the shed, this may come in usefull one day. Whilst in the shed get a stick of dynamite. Place the TNT in the spot you have chosen for your tree. Retrieve the lighter from your pocket and light the fuse.
As the fuse is burning, run like buggery until you're behind a solid object. When you hear the explosion you may come out from behind the object. After the dust has settled you will see the hole.
Congratulations.
You may now plant your tree. Drag te tree into the hole and make sure it's the right way up (roots in the ground, leaves at the sky).
Go to the shed and get the shovel. You will now use this to scrape dirt into the hole, covering the trees root system. Water the tree and relax.
See, digging a hole wasn't so hard now was it?