The point of setting up a Scratch Disk is that when I save my work, it has an internal base for where all my work and elements I've used in my project can go. This will make sure that I don't have to start all over again. For example, if I use another computer that has Final Cut Pro, then I have all my projects and there is no need to import them again.
To set up a Scratch Disk,
I had to open up Final Cut Pro
Click on the "Final Cut Pro" tab
then select "Systems Settings"
Then click on "Set" and choose the file path
For this, I had to go to "Macintosh HD 2"
and create a folder with my name on it.
(That is the folder where the work shall be saved)
That is how to create a Scratch Disk.

