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Zach demonstrates how to save a Word document on a computer for better organization, emphasizing the importance of having backups for school work. He explains how to go to the file menu and use the "Save as" option to save the document in a specific folder, creating a new folder for organization. Zach also shows how to use the shortcut Ctrl+S to quickly save the document. Once saved, he demonstrates how to access the saved document in the designated folder in the Explorer window.