Step 1 : Sign in to your Hotmail account. Regardless of whether your home screen is your inbox or Windows Live's "Today" screen, in the upper right corner, just under your name, you will see a tab that says "Options" with an arrow next to it. Click that. It will open a drop-down menu that includes the choice of "More options."
Step 2 : Choose "More Options." In the "Hotmail Options" screen that appears, choose "View and edit your personal information" under "Manage your account."
Step 3 : Go to the section that reads "Password Reset Information." You will see "Password: ********" and next to it a blue hyperlink that says "Change." Click the hyperlink.
Step 4 : Enter your old password, then your new password. You'll be asked to enter this twice.
Step 5 : Click "Save." You'll be taken back to the "Manage your account" screen, which will now have a blue box at the top reading "your information has been saved."
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