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So, what is the best way to keep these files straight? Well, the professionals find a consistent system to maintain their files. When saving a file, don't overwrite an existing file but use the "Save As". You can name it (preferably something that makes sense) with a backup copy (Document.old.txt) or even use a version number or date (Document_V1.txt, DocumentMarch2012.txt) Sometimes it is easier to keep all the versions in a separate folder.
Right-click on a blank spot and left-click to select "New" and "Folder". Keeping your files organized can make things so much easier.. but that's another article! ☺