What exactly is a familiar. I really want one but ive read books where they are spirits of the dead, demons, totems, elemental spirits, or an actual animal.
A familiar is generally a spiritual animal, but you could also have a physical animal. They are a lot like pets, but lend energy or potency to your magickal workings. Say you want the aspect of a certain animal involved with a ritual or spell, you would have that familiar lend energy to you or to the work. Though, a familiar is something that tends to be for life, so picking or having a familiar that you know you will be utilizing the aspects of often is wise.
I don't know a lot about them, but I think a familiar is basically an Artificial Intelligence. It is a living being (be it dependent or independent) brought into existence by you for the purpose of assisting you. It is may be an extension of you or a certain aspect of yourself, but it certainly is physically separate from you. I, personally, am apprehensive about such a thing as I worry that it can develop a separate personality from you the longer you keep it and perhaps even rebel. Even when I charge up my wand with my energy I take great care to ensure I only ever think of my wand as a tool, nothing more. I think you can re-absorb a familiar into you if you do it soon enough, which can make it effective for something you don't have the effort for at the moment, such as scouting. Make sure that when you are researching familiars you don't get them confused with spirits, daemons, and deities, each of which has their own set of rules.
Power animals or Spirit Animals or Spirit Guides are great at giving advice. often representiIn some ways the repsent our higher Self or something that we have not paid attention to or need to express or help in some ways. In a meditative state you can ask for their assistance on problems that have been bothering you. Sometimes, if they want to, two power animals might work in together with each other.
Do not confuse a familiar with a spirit animal, though they can be spirit animals familiars are more commonly physical animals that are only there to assist you in your practice.
Familiars are animals that play important parts in traditional witchcraft and are quite notably a witch's best friend. They can be pets but really partake in a more free and open relationship with the practitioner they deal with.
Familiars connect with their practitioner on a spiritual basis but are not the same thing as spirit guides or spirit animals, in most cases.
Demons are a very coincidental concept to bring up in the mentioning of familiars as familiars are not typically considered demons. Now if you look at the movie The Golden Compass, they play similar roles, but that's Hollywood fiction.
Totems are symbolic animals of traditional spirituality that shows steps in a person's or settlement's life. They offer lessons to be learned and decisions to be made.
Elemental spirits are a totally different ball game. These are the personified characteristics of the elements. In stories they have at times taken the form of various etheral beings like the fae.
You know what an actual animal is...
Now then, familiars can have to do with each thing you've mentioned (with the unusual exception of demons) but normally they really are just normal animals connected to a person on a higher level.
A familiar is a spirit that forms a reciprocal relationship with a witch or other spirit worker. Familiars take on various forms, most often that of small animals, hence the idea that a familiar is an actual animal, but also tiny humanoid figures. Historical accounts say that familiars appear either when the witch was going about his or her household chores or was gifted to the witch by a family member or 'dark stranger'.
Sources;
Cunning-Folk and Familiar Spirits: Shamanistic Visionary Traditions in Early Modern British Witchcraft and Magic by Emma Wilby
Call of the Horned Piper by Nigel Aldcroft Jackson
From my experience, they can be physical or spiritual. I did a spell for one every night for a long time until mine was born, he was a grey cat. I had a very strong connection with him and I knew exactly when he died when I wasn't there... Now he stays with me in spirit and continues to help me to this day. When you find your Familiar, there will not be any guessing, it will be pretty obvious...or at least it was for me.
Familiar is basically a kindred spirit (a friend). Some believe that a physical animal that is a "familiar" of someone is actually the host of a more human spirit, that it influences the animal and works through it to help you. This is a theory that makes the most sense to me, because even Native Americans believed that their ancestors would come to them to give messages or protect them in the form of a physical animal.
Familiars are not collected or acquired by force. They will come into your life when they want to. You'll know it is a familiar when you feel a close relationship with the animal nearly instantly at first meeting. They will act unlike a random animal, seeming more intelligent, having an easier time communicating with you, and usually they are attracted to magick. Mine always sat on my grimore no matter where I put it, and would sit just outside my circle and stare at me, standing as still as a statue, during my rituals, like he was guarding me. (He was a cat, if you wondered).