How to properly mulch my tree?


I know that I need to keep the mulch away from the bark, not red mulch and putting down newspaper. What type of mulch would you recommend? What is the most cost effective? Any tips on what to do before mulching? Should I dig up the area then throw soil then mulch? Will mulch be good to keep my tree nice and growing?

Edit: thanks, my plan now is to dig it, then add some good top soil, then throw mulch on top and of course using all the techniques in all the vids and articles!

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