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Zack demonstrates how to save a Word document on your computer for better organization. He suggests creating backups for schoolwork. To save the document, go to the file menu and select "Save As" or click the disk icon (Ctrl + S). Zack navigates to his Documents folder, creates a new folder named "School 2014," and titles the document "Test Document." After saving, he confirms that the document can be closed without losing any data. Finally, he shows how to locate the saved document by navigating through the Explorer window to the "School 2014" folder.