For Bogdanov reality itself is living experience.

In The Philosophy of Living Experience Bogdanov mentions that for medieval Russian peasants, forest trolls were, for all intents and purposes, real, because they served an explanatory purpose for the Russian peasants. We would not consider them real today, because the phenomena that they explained can be better explained through other things, but the forest trolls served the purpose of explaining the edges of the knowledge of Russian peasants. This then shaped the reality of those peasants.

The ways in which we interact with the world then come to shape our reality.