Is it possible to pay a lot less for clicks?

I am very new to adwords.
So my first adword campaign tells me I need to pay at least $5 plus to be on the first page for almost all the keywords …
As I have a low daily budget, I am just wondering if it’s possible to pay much lower than that with good quality score or alternatively bid for other longer keywords? Just wondering if I can bid at say e.g $0.20 a click?
And should I use those keywords generated by Google or find somewhere else? Perhaps someone can offer his/her advice?
Thanks very much.

See original post by kenn