<prompt> Human: Income: my wife and I are 24. Our combined income is just over 60kyear. However, my wife is going to leave her teaching job in May, and will be going back to school for her Masters degree, assuming she can find a full-time job to help offset these costs expected combined salary: 50kyear. Yes, yes, I know I shouldnt assume what our salary will be, but if she doesnt find a job that pays well enough, she wont go back to school.Assets: I have 7k in a Roth IRA, and we have about 30k between our checking account and a high-yield savings account. Were able to save about 1kmonth, and Im expecting about 2-3k for our tax return. So, by the time were ready to move, we should have about 40k in total assets not counting Roth IRA, since thats a retirement account.Expenses: Our monthly expenses not counting rent are about 2000.Rent: Were looking at renting a house starting in a few months. Rent for most houses were looking at is about 1250month. Math: Theres pretty nice looking homes around here that are selling for 125-140k. Assuming a 4.5 mortgage, a 10 down payment, 1.25 property tax, 2000year home insurance, 3000year home maintenance, and a 1 annual PMI on the loan principal, Im getting a total monthly averaged cost of 1225month. However, about 150-200 of that is going toward principal, so it should come out to 1050month that is going toward interestPMImaintenanceinsuranceproperty taxes. So, it looks like it would be about 200-250month cheaper in the end to buy as opposed to renting.Concerns: With a 14k down payment for example, 3k closing costs, and 3k moving costs miscellaneous buying a refrigeratorwasherdryerlawnmower, this would leave us with 20k roughly in assets, which would be about a 6-month emergency fund. However, if my wife goes back to school, we probably wont be able to save much if any every month, so we would be stuck at about a 6-month emergency fund for the next 2-3 years, with no way to replenish it if we have to dip into it. But, on the other hand, we would come out about 10k ahead when we move out in about 3 years, assuming the home price doesnt change.TL;DR: Two options: A Have a 12-month emergency fund for the next 2-3 years. B Have a 6-month emergency fund for the next 2-3 years, but end up making about 10k when we move in 3 years.  <response>: I wouldnt buy a home if your wife is quitting to go to grad school and youll be moving in three years. The housing market could drop and youll be stuck with a house you cant sell. 