it all will work together but i would not bother with a 120 gb ssd. it will fill up so fast you'll likely never get the desired effect out of it. 500+gb is the lowest i'd go for one. for now just use the WD blue and get a bigger ssd down the road when you have the cash. they are coming down in price quickly so should be able to save up pretty quick. i see 500gb models for about $60 all over. and even less on sale down to under $50 at times.
second thing is the psu. i'd go for a better one than that one for a bit extra cash. i don't see many better options for decent price but what you save not getting the tiny ssd, can go to a better psu such as...