Will this set up work?

I wouldn't bother choosing your parts before you got the money because by time you got it new and better parts will come out for the same price.
 
i'd swap the psu for the 520w corsair, memory to 6400 don't really need 8500, and the 8200 processor.

aside from that as mentioned by matty think about it again when you have the money.
 
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