Q: Apple Music without syncing existing music across devices.

Hi There

So i have hundreds of songs in iTunes stored on my Macbook and I make playlists of the moment and add them to my iPhone for car trips/gyming etc.

Now, I want to use apple music on both devices. When i activated it, it synced all the music on my Macbook with my iPhone -- my iPhone is only 16GB so it can't handle all of it so I cleared it all off and turned off iCloud Music Library on my phone. But now, I can't create playlists from Apple music or use the play offline option  on my iPhone-- how can i use apple music properly on both my Macbook and my iPhone without all my previously downloaded music syncing across devices?

Any help would be appreciated!!!