For Ezra had set his heart to study the Law of the LORD, and to do it and to teach his statutes and rules in Israel.  Ezr 7:10  
Bible Study - How to Guide
"God changes our lives through the application of His Word."
"But prove yourselves doers of the word, and not merely hearers who delude themselves." James 1:22 (NASU) 

When a passage of Scripture is chosen for study simply observe, interpret, and apply. 
Just  three basic steps will put the Word of God into your life.
Observe the passage by asking the question: What do I see?"
Interpret the passage by asking the question: "What does it mean?"
Apply the passage by asking the question: "What do I do?"

Just answer each question as you study your chosen passage. 
CHOOSE  A PASSAGE
Select 3-10 verses dealing with the same topic. Give some thought to why you want to study the passage you chose.
OBSERVE THE PASSAGE BY ASKING QUESTIONS
Consider all observations as valuable by writting them down. Use the following list of questions to guide you.
• Who is writing or speaking in the text to whom?
• What is the passage about?
• What are the commands?
• What are the promises or cause/effect relationships?
• What are the repeated words and ideas?
• What issues or problems were the recipients facing?
• Where does this take place?
• When does this take place?
• Why does the speaker or author say or write what he does?
• What do I learn about God?
• What do I learn about Jesus?
• What do I learn about the Holy Spirit?
• What do I learn about  mankind or myself?
Write out any additional observations or insights from the passage. This may include contrasts, lists, comparisons, etc.

INTERPRET THE PASSAGE
WHAT IS THE "BIG IDEA" OF THE PASSAGE—YOUR THEME?
This can be mostly identified by the commands, repeated words and ideas in the passage. There will usually  be one command in the passage with several motivations. 

Sum up the main thought of the passage in one phrase. Be sure that your theme is big enough in scope to include everything the author is saying in the passage. It's usualy the biggest point that is being made. Often it requires stepping back and looking at the passage as a whole.
ANSWER THE OBSERVATION STEP QUESTIONS YOU RAISED  
Form an outline with your answers. Using your main theme, break down the passage into sub points under the theme. The sub points will become principles of life and ministry. A principle is a timeless lesson of how God works or is accomplishing things in the world.
To develop each principle or each point in your outline, you will need to EXPLAIN IT (thats interpretation), ILLUSTRATE IT (from Biblical or personal examples showing how this principle has worked out both positively and negatively) and APPLY IT (be aware that every point will not have a specific application). Use a separate sheet of paper to do this.
For example, Luke 10:38-42 is the passage about Jesus visiting the home of Mary and Martha.
The passage is about choosing what is best for your spiritual life. The author is saying that sitting at the feet of Jesus is best. But, how does each verse fit into the theme? This is where interpretation comes in.
Martha is distracted by busyness. Busyness takes away from our spiritual life.
Mary is sitting at the feet of Jesus listening to Him. Sitting and listening to Jesus is always a priority in our spiritual lives. Jesus says make time to sit and listen.
STEPS TO INTERPRETING THE PASSAGE
To help you interpret the passage, use answers like the ones listed below. Use as many or as few as needed.
• What are the meanings of the words?
• What does the immediate context suggest? (preceding and succeeding verses)
• What does the broader context suggest? (chapter and book)
• What do other cross references suggest?
• What is the cultural meaning? (What did it mean to those to whom it was originally addressed?)
• What do commentaries suggest?
APPLY IT TO YOUR LIFE
This is where you determine to do what God has taught you through bible study. (James1:21-25, Mt. 7:24-27) God changes our lives through the application of His Word.
Application does not happen by osmosis, but by intent. God enlightens us from His Word, we act out the application with our wills, and the Holy Spirit empowers us to carry out the action.

It is usually better to concentrate on applying one principle at a time. The goal of all application is to glorify God by becoming more like Jesus.
2 Timothy 3:16—"All Scripture is inspired by God and profitable for:
TEACHING: What did I learn?
REPROOF: Where do I fall short? Why do I fall short?
CORRECTION: What will I do about it?
TRAINING IN RIGHTEOUSNESS: How can I make this principle a consistent part of my life?
Study to shew thyself approved unto God, a workman that needeth not to be ashamed, rightly dividing the word of truth. 2Ti 2:15
Glorifying the Triune God by creatively declaring the relevancy and practicality of His timeless Word..