When you save a new document you have created, you get a Save dialog box where you give the document a name and tell the Mac where on your hard drive to save it.
If your Save dialog looks like the one in the top illustration at the right, then you are using the simple Save dialog box. Your only choices for location to save the file are your main folders: Desktop, Documents, Pictures, Movies, etc. This is fine for saving a small number of files, but once your file collection starts to grow, you will probably want to create folders inside of those folders to better organize your work.
Click on the down arrow button to the right of the name field to open the expanded Save dialog box (lower illustration). The expanded Save dialog looks a lot like the Finder and you can navigate your hard drive in the same way. It also contains a New Folder button so that you can create new folders and organize on the fly.
Expanded Save Dialog Click to see a larger image
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