Tomas is your new client. Two years ago he bought a condo and now he finds that money is tight. He is looking for your input on his financial position.

Below is his financial data for 2020: incomes and expenses are annual; assets & liabilities are balances as of December 31, 2020.

Chequing Account $3,000 RRSP $21,000

Saving Account $6,000 Condo $590,000

Stock Portfolio $18,000 Car $39,000

GIC (5 year term) $7,000 Student Loans $21,000

Car Loan $25,000 Line of Credit (outstanding) $29,000

Employment Income $88,000 Mortgage Debt $250,000

Income Taxes $32,000 Clothing $2,500

Mortgage Payments $17,000 Heat $2,000

Food Expense $5,000 Entertainment $5,000

Loan Payments $11,000 Transportation $4,500

Condo Fees $1,000 Vacation $4,000

Insurance premiums $3,000 Property taxes $4,000

Charitable donations $1,000

Identify and justify which expense(s) you recommend he decrease. Ensure you explain fully your rationale for the expense(s) included.