Should we make judgements on appearances?

How is it that we make decisions in life or make proper evaluations.  For some appearances alone are enough for them to decision on.  But not so with children of God.  The Lord Jesus admonished us in John 7:24 that "We should not judge according to appearance, but judge with righteous judgement".  What does that mean?  It means that when we are living our life by faith we are not simply moved by what we see, but we are moved by our faith in the Word of God.  So when we make our evaluations, they are based upon the Word of God and the teaching laid into us by the Holy Spirit.  For then we know that we are building our life upon the rock of God's word.