Creating a Playlist on MacBook Pro

[nyrngrz]

I have installed the VLC for Mac but cannot figure out how to create playlists. I want to create a playlist for various artists so I can have the player play songs just by that artist. I have read various instructions but am having difficulty. When I click on File & select Save Playlist, in the pop up box I enter the title (Name of Artist), in the file section I select XML Shareable Playlist format (XSPF). Now here is where I am having difficulty, in the Where section what do I select? I first selected Music but I can't find what I saved and there isn't a window to add songs. The instructions say to place the songs in the window but a window does not appear. I have been at this for a number of days and can't figure it out. I would appreciate help from anyone. Thanks.