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The heading here could be anything: affirmative defenses in an answer, articles in a contract, etc. It doesn’t matter; the technique is the same with only slight variations. The result is that you’ll have a heading saved in your Quick Parts that will be numbered correctly, no matter how many items you add or delete. This makes this technique particularly useful in building templates for common documents; because it’s always easier to delete than add, they’ll re-number themselves after editing.
Starting an auto-numbered paragraph is deceptively simple. See those buttons on the top row of the Paragraph section of the Home tab? The left-most one is for bullets; the next two to its right are for numbering and multi-level numbering, respectively. Simply click the button to toggle the feature on, or click on the drop-down arrow on each button to select a specific style. If you don’t like any of the delivered choices, you can click Define New to set your own.
A request for numbering headings in a new document doesn't have to elicit terror—it only sounds ghoulish. If you're good with styles, you might consider a custom numbered list style, but that's too much work. Instead, use Word's built-in heading styles for a painless process. My best advice is to get the numbering scheme in place before you create the document. Trying to number headings in an existing document really can cause nightmares!