Nobody else can tell you what you can afford. You're unlikely to get everything right first time and will need to watch and learn and alter you camapaign, so be prepared to treat your budget as an investment that might not put you into profit immediately, but will yield returns in time.
Well having said I would never advise because nobody else knows what you can afford - if $5 is all you can afford, then yes, $5 - but in reality, that is such a tiny amount that you're not going to get any useful data on how the campaign is working
Exactly - I'd say don't try adwords until you have a decent budget, then read a lot of posts first and the google help files. Approach with a budget in which you can afford to lose some at first whilst gaining Quality Score, choosing effective keywords, finding the best ads for you etc. No one can tell you how much to bid per keyword as the amount you can afford depends on a lot of things, including but not exclusively: 1) your keyword choice 2) your product and how well it sells 3) your website and how well it converts
I'm just starting with Pay per click also. I found a coupon for YSM and learned a ton for $140 and now I bought a voucher for $100 for $25 on here. With the $10 min deposit I got $105 after the activation fee. Its been up for two days and came out profitable so far so I'm happy. My YSM broke even. Now I'm getting good information for later adventures on pay per click.