Sometimes the Microsoft Applications ​ default to saving to Online Locations. This is easily changed by clicking the On My Mac button.

To Save your work on your Computer:
 

1. Save your Document and wait for the Dialogue Box to appear.
    
2. To Change the Save Location from Online to On Your Mac, click on the On My Mac Button.
   
    
3. You should now be able to see the 'normal' save dialogue box. Select where you would like to save your work and press Save.