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Zach demonstrates how to save a Word document on your computer for better organization. By going to the file menu, you can select "save as" to create backups. Alternatively, use the disk icon or press ctrl S to bring up the save as menu. Create a new folder in your documents for organization, and save the document with a relevant title. Once saved, you can close the document without losing any progress. Access the saved document in your Explorer window under the created folder.