Well, if you're living paycheck to paycheck, it amounts to the same thing.

Regarding "if you are paying any income tax on income that you haven't yet spent, you're not doing it right"

I'm doubtful of this - if you live off capital, and you have no dividend paying stocks or bonds, isn't that unnecessarily risky? It seems like some assumptions are likely to be made, where you pre-plan your income according to your expected expenses, as opposed to selling shares of stock whenever you need money. Also, dividends or interest payments inherently provide a barometer of whether you're living beyond your means, assuming you're wealthy enough to live off of them.