Cheap Power Supply - Worth the Risk?

What to do:


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orangejedi829

Honorable
Apr 1, 2013
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10,510
So I am building a cheapo server; Ivy B. Pentium, basic mobo and RAM, no discrete GPU. This is what I was looking at for the case/PSU solution, for maximal cost-efficiency:
http://www.newegg.com/Product/Product.aspx?Item=N82E16811148046
I figured that I'd use the cheap PSU until it died, then buy a better one.
However, I have the nagging fear that, when it dies, it'll do a 'suicide run' and take as much of the rest of the machine as it can with it.
So, I was alternately looking at this PSU:
http://www.newegg.com/Product/Product.aspx?Item=N82E16817182006
Itself, it costs more than that other case and PSU combined, and it's still just a bargain-level unit.

So my question is this: Is it a condemnably-bad decision to go with the cheap PSU? Is it worth, say, $40 extra for a *different* low-end PSU such as the Rosewill, especially since the entire build only totals $160?
Cost is a major factor in this build.

Thanks for the advice!