Create Personal folders on my Mac in Outlook 2011

Follow these steps using Outlook 2011 on a Mac to create Personal folders. Personal folders (on your computer) are folders that are local to your machine. Email put in these folders are NOT on the server, so it decreases your email quota.

1. In Outlook 2011, select Preferences under the Outlook menu
2. Under Personal Settings, select General Icon
3. Uncheck both boxes under Folder List (make sure nothing is checked)
4. Close out of this preference
5. In Outlook, on left side, under your folders look for "ON MY COMPUTER" folders
6. Click on On my computer Inbox
7. Go up to Menu icons and select NEW - FOLDER
8. Type in the name you wish to call this folder
9. Click out of folder, and you now created a folder locally on your Mac.

The last step is to move mail from other folders into your newly created Local folders.

Source:  http://kb.mit.edu/confluence/display/istcontrib/Create+Personal+folders+on+my+Mac+in+Outlook+2011