These "percentage of income" approaches to budgeting have never made sense to me. If you earn $12,000/year, you might be able to afford to spend only 1% of your income on a vacation. If you earn $120,000/year, you should be able to afford a much higher percentage.
A better approach might be to set aside all your fixed monthly expenses (rent/mortgage, car payments, taxes, etc.), your necessities (food, transportation), and your savings goals, and then see what's left over for things like vacations and other leisure activities.
In actual practice, my approach is to pick a destination or activity for my vacation and just save up for it until I can afford to go.
A better approach might be to set aside all your fixed monthly expenses (rent/mortgage, car payments, taxes, etc.), your necessities (food, transportation), and your savings goals, and then see what's left over for things like vacations and other leisure activities.
In actual practice, my approach is to pick a destination or activity for my vacation and just save up for it until I can afford to go.