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Zach demonstrates how to save a Word document on a computer for better organization, emphasizing the importance of backups for school work. He shows how to save by going to the file menu and selecting "save as" or using the shortcut ctrl S. Zach creates a new folder in the documents folder called "school 2014" for the test document he is saving. Once saved, he shows that the document can be closed without losing any information. The saved document can be found in the Explorer window under the "school 2014" folder in documents.