Understanding your finances is essential for running a successful real estate business. Key components include cash inflow, profit, return on investment (ROI) on marketing, taxes, and retirement planning. Cash inflow should primarily come from commission checks, while profit is generated when income exceeds expenses. Marketing should ideally yield a 10x return. Agents must also set aside funds for taxes and consider retirement savings options like a SEP IRA. Knowledge of these financial aspects is crucial for business health and sustainability.