First off, welcome to the forum!
The system you are suggesting is a very low end system, and I believe you in that case can get a full second hand PC for just slightly more.
I would ditch the RX 5500 XT, take the money saved, and buy a 5600G plus 32 GB DDR4 3200MT@CL16 plus a 512 NVMe gen 3 with DRAM.
Gen 4 is nice but not necessary and not worth the extra cost in your price bracket.
Good drive models to consider, ADATA Swordfish, Teamgroup MP34 and MP44L, Samsung 980 Pro, Western Digital SN850X and Kingston KC3000. They are worth the 10-15% extra money.
— Quick edit with numbers —
Got some more time now to explain this. So this is probably what you are going for:
PCPartPicker Part List
Ok, let’s reshuffle that build for a system without a GPU that will still run pretty decent:
PCPartPicker Part List
The main idea here is that you go with a decent system that will lack a GPU for the first 6 months or so, instead of a garbage tier system that will work, but the experience will not be very good. The idea is that you save up to a GPU with allowance or whatever and hunt for either a used GPU, or take aim for that 5500 XT in a few months. I would probably even reach for a 6600 that can be had for $180.
- Video card has been removed. (-$139)
- CPU has had a slight upgrade with integrated graphics. They are not as good as the GPU you proposed, but they are good enough to get you started. (+$30)
- Motherboard has been upgraded to a better one with a better thermal solution and potential support for PCIe 4.0 (though, you need a different CPU for that). (+$25)
- Two case fans have been added. (+$25)
- RAM has doubled - 32 GB should last you for at least 5 years (+$20)
- Storage is twice as big and OK performance (+$15)
- PSU is now Gold rated and fully modular (+$5)
All of the above assume you have access to the US or EU markets. If you are anywhere else in the world, you need to adjust it to your markets. And to answer your question, that 5500+5500 XT combo is fine and yes it would work to build it like that, but it’s also a lot of sharp corners to cut yourself on
As with all my suggestions, feel free to add, modify, or combine any of the above that was just said!