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Dawn Monroe from Dawn Monroe Training explains how to create a template file in Microsoft Word for repeated use. She shares her screen while demonstrating the process, using a handout file she frequently utilizes for webinars. Instead of searching for the old document, she shows how to save a new version as a Word template by choosing "File" and then "Save As," ensuring it's labeled as a template for easy identification. This method streamlines document creation by allowing users to start with a pre-set template rather than recreating documents from scratch each time they need them.