This is one of the few subjects that is taught well via a youtube tutorial, so instead of making a tutorial, I'm

just going to refer you to the youtube video that I feel explains Aspect Ratio best:

https://www.youtube.com/watch?v=R26_F7pecqo

I've also included a downloadable aspect ratio template for the popular 2.35:1 Anamorphic ratio that is
common in cinemas.

I like to apply this aspect ratio overtop my video when I want to give my video a more cinematic/hollywood
effect.