How to handle cashback bonuses?

[sizzlinkola]

I'm a CC churner and want to apply for a CC to get a $400 cashback bonus. I'm having a dilemma on how to treat this $400.

I'm planning to make a large purchase for a hobby of mine: crash pads for bouldering. At the same time, I want to maximize my Roth IRA or reduce my debt. Thus, I'm conflicted on the different options on how I could use this money:

• 2 pads for $310 (superior quality, long life). Invest leftover $90 into Roth.
  

• 1 $150 pad (average quality, short-medium life). Invest leftover $250 into Roth.

• Invest entire $400 into Roth. Buy either pad option with take-home pay.
  

If I didn't have the $400 bonus, I would feel bad about buying the $310 pads and may opt for the $150 pad instead (or 1 superior quality pad rather than 2). Thus, having the $400 bonus makes me feel less guilty to splurge.

My finances: Have a 6 mo EF. I maximize my 401(k), HSA and working on my Roth. I'm confident I'd be able to maximize my Roth without any cashback bonus. I have a student loan of $16k @ 3.4-3.8% and a auto loan $12k @ 2.2%.

How should I handle this?

[terran]

A credit card bonus is no different than income from any other source. Income is income, not something special because of where it came from. Ignore that and this is just a question of saving vs spending, so do what matches your values most closely.

[SuperSecretName]

money if fungible.  research the concept if you aren't familiar.

[MDM]

Whether the $400 is taxable or not depends on how the rewards are received.

Said another way, depending on how you obtain them, rewards may [or may not] be taxable as income.