I started investing two years ago. Currently my situation is as follows:
I earn 1700 € per month and manage to save 1200. To be Conservative and as rents are going up in my country, we can assume that I save 1000 € per month. Note: this is a country where we have universal healthcare and this is a "decent" salary. Not very high, not very low.
I have 5000 € in my account and 24000 € invested in the stocks market.
No debt. No other assets.
Dividend yield is around 900€ yearly after taxes.
My bank has offered me a credit of up to 60000€ with an interest rate of 3.95%, meaning that if I borrowed 60000 € I would have to pay a total amount (capital + interest) of 68775 € over 7 years, i. e. 818.75 € monthly.
I would borrow the money for investing in blue chips with temporal diversification.
Borrowing 60000 € seems like too much for me, so I wonder which quantity would you think could be reasonable in my situation. For example 30000 € would mean 409.36 € per month. This does seem like a good compromise between risk and profit.
What do you think? First, should I use leverage? If so, how much should I borrow.
The intention is to kick-start my Investments in order to invest as soon as possible to make use of compound interest.