Mulching around your plants has many benefits. It holds in moisture by reducing evaporation from the soil, keeps weed seeds from being able to germinate, and moderates the temperature of the soil so that it doesn't vary as much with direct sun and changes in air temperature. Mulching can cool the soil for plants like blueberries and it will help hold some heat in for summer vegetables as the air gets cooler.
Mulch will guard against soil erosion when the rains start. Organic mulch such as wood chips or bark will slowly break down and improve your soil over time.
It is recommended to keep mulch six inches away from trunks and twelve inches away from buildings.
Many local tree trimming companies are happy to deliver free wood trimmings that can excellent mulch - just be sure that the trimmings are disease- and palm- and eucalyptus- free. This can be hard to guarantee. Straw (not hay) from the local feed store can also be inexpensive, effective mulch.