How to Change the Default Save Location and File Format in Word 2007 and 2010?

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By default Word 2007 and Word 2010 save documents in the My Documents folder. If you want to save Word documents in a different location, you can change this default. Select file option then click on Option button. You will see the dialog shown below in attachment 1-

attachment 1.gif

Select save option and change Default file location (marked red color). In a similar way you can change auto recovery settings.