MS Word goes into read-only mode when trying to save document

I just installed a clean copy of MS Word 2016 for Mac today. I opened and started writing a essay, but I can't save it.

When I try to save, either with ⌘-S, ⌘-⇧-S, the save option under the file dropdown, or the save-as under the dropdown, the top meny grays out and I can't edit the document anymore.

Also, after it goes into read-only I can change it back under the Word dropdown and click the Activate Office button.

2 screenshots of before and after:

Before:

After:

I can't do anything like this. How can I stop this from happening?

I already activated office from the wizard that popped up when I first installed and opened MS Word. I entered email and password, and it found my license and said I was good to go.

So it shouldn't be de-activating on me. I did purchase it, and it was MS Office 2016.

I am ruing the lastest OS X version, El Capitan 10.11.4.