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Dawn Monroe demonstrates how to create a template file in Microsoft Word to streamline repetitive tasks. She emphasizes the efficiency of starting a new document from a template instead of locating and modifying an old one. Monroe shares her screen to show a handout file she frequently uses for webinars. She explains the process by saving this file as a Word template, ensuring it's easy to find by naming it "handout new." This method simplifies the creation of recurring documents, allowing users to easily access a consistent format for future use.