It's one thing when you have people depending on you, a family to feed, a house to upkeep, etc. But if you're just in college or grad school, or for any other reason aren't being depended on, then this might be a good way to decide what you want in your life.
I certainly found that since I recently started thinking about this, it's improved my life.
For instance, I was recently trying to pick a martial art to start learning, and after seeing a few Wushu schools, I saw my Capoeira school. While the Wushu schools seemed, 'ehhh, pretty good I guess', the Capoeira school was an instant 'Hell yeah!' - so now I'm doing Capoeira and having a beyond great time. I had the same experience with finding a job last summer, and, similarly, greatly enjoyed it when I found one.
In summary: sure, this might not be the best way to live if you have significant responsibilities to others, but if you are trying to enjoy your life and are living freely this may be a great philosophy to adopt.