This keeps files in order and enables you to find them in the future. Notice the way the window in the example has two folders and a variety of files all over the place. This is not good practice. When you create files you ought to save them in the appropriate folders. Use the navigation buttons to move about your filing system.
Hard Drives are preferred places to store files .
Use floppy disks for backup purposes or to move a file from one computer to another. N.B. Files that are saved in the wrong place can be dragged into the correct folder when you do your regular housekeeping. Open up a windows showing the two folders. Open up 1 folder containing some files. You may also use this method to Select, Copy and Paste files for backup purposes.