Judging Other People (1)

One of the things I regularly struggle with is: feeling that I have to live my life in a certain way, and that the way other people live theirs are often not right/biblical. By that, I mean both Christian and non-Christian people.
I suppose it is ok with the former, but the second part comes down to judging others, which--for me--sounds troubling.

The bible says in Luke 6:37-38:

Do not judge, and you will not be judged. Do not condemn, and you will not be condemned. Forgive, and you will be forgiven. Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.

I have always read only the first part of that verse, of which--taken wrongly--means "don't ever judge". But that is confusing to me because I feel that at some point we should judge and help our brothers and sisters when needed (Uh oh, I see a problem there, because I think I am the right one. I'll come back to this later). We need to judge in a lot of things we do, and to make good decisions.
So.. my next question is: What does Jesus mean He said "Do not judge" in this verse? What kinds of judgments does He not allow? How should I judge correctly?

What I say next is based on my reading and self-reflection. I do hope God guides me since He has put this concern in me for a long time. But feel free to give your thoughts, make corrections, or email me about your concerns :)

What does Jesus mean?

I realize I need to read further in the bible, on Luke 6:39-42:

He also told them this parable: "Can a blind man lead a blind man? Will they not both fall into a pit? A student is not above his teacher, but everyone who is fully trained will be like his teacher.
Why do you look at the speck of sawdust in your brother's eye and pay no attention to the plank in your own eye? How can you say to your brother, 'Brother, let me take the speck out of your eye,' when you yourself fail to see the plank in your own eye? You hypocrite, first take the plank out of your eye, and then you will see clearly to remove the speck from your brother's eye.

Jesus reminded us that we are also lost people, in need of guidance from Him. We make mistakes and sin, often times without realizing it. Thus we're blind. Because we're blind, how can we say, "I'm going to guide this friend of mine so he/she comes back to God." My friend and I are in the same condition!

But Jesus does not mean simply that we should never help other people because we're just as bad as them. On verse 42, He says, "You hypocrite, first take the plank out of your eye, .." For example, I would tell that some people (I know) spend lavishly, such as buy expensive/too many clothings, take many vacations, dine in expensive restaurants and throw left-over food. I consider those wrong, and they are probably wrong in general sense, but when I keep those negative thoughts about them, I am condemning myself. Because sometimes I do those, too. When I think that other people sin, I sin, too; that they should be punished, I should be, too.
What I should do is inspect myself and see if I sin in similar ways. Sometimes the issue is not as simple as I thought.

(to be continued..)