I think that's smart, on paper at least.
What so you do about the cheap tools that turn out so bad that they cause damage?
For example, you get a cheap screwdriver, it breaks while you use it, and you end up making a hole in the cabinet you were trying to fix.
While the general approach sounds sane, it seems to me there are a lot of cases where going for the cheap version could cost a lot in collateral damage.