What format to save the image?

This question was sent in by Elle:

Using the instructions in Chapter 3, I placed the sample photo 3b onto a blank image that I had filled with my chosen color. I learned the guide tool, and placed my image where I want it on the page. The instructions say to print the image and fold it.

I wanted to save the file because the instructions indicate that I will learn how to add type later on (pg. 42, More Tools). When I clicked on 'file,' then on 'save as,' the file type defaulted to PSD. Do I leave the file in that format to save it? Will the format make a difference on whether I can add type later? Oh... the pop up box shows 'save options,' and the Layers box already had a check in it.

Here is my reply:

I recommend that you save all of your documents as PSD (Photoshop format) files. Be sure to leave the Layers option on. That way you will always be able to go back later and alter some or all of your image.

When you are ready to output the document for a particular purpose, then you can use Save As to save a copy of the image in another file format.

For example, if you are going to print the document, you may wish to save it as a high-resolution (150 ppi or greater) JPG or TIFF file. (You can also print the PSD document directly.)

If you want to use the image on a website, then use the Save for Web menu item to save a JPG or GIF file. (JPGs are best for photographs.)

Beware of saving JPG or GIF files over and over again. Each time you save a JPG or GIF, it will compress and recompress the file and eventually degrade the quality of the image. That's another reason to do most of your work in the PSD format - to preserve quality - and to save copies in other formats whenever you have a particular use for the document.

Please let me know if you have any more questions.