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Zach explains how to save a Word document on your computer for organization, emphasizing the importance of backups for schoolwork. He demonstrates two methods: going to the file menu and selecting "Save As," or using the shortcut Ctrl+S. Zach creates a new folder named "school 2014," saves the document inside it, and shows that closing the document does not result in data loss. The tutorial concludes with him locating the saved document in the Explorer window for easy access.