I think you have two questions in one:
1.) How to work with a Thread in Java? The answer of Fizer Khan is an example of this.
2.) How do static methods work in java? If you have a static method you are, in a maner of speaking, on a "static layer". You have no "this" reference because there is not object on this layer. Only if you create an instance you can access instance fields and non static methods on this object.
If you add a second static method, you can do the same stuff as in your main method, because both are static. This is rudementary look at this question: https://stackoverflow.com/questions/18402564/how-do-static-methods-work
pulblic class Thread1 implements Runnable{ //name should be upper case
public void run(){
System.out.println("thread started");
}
public static void main(String args[]) throws Exception{ //static method
Thread t1=new Thread(new Thread1()); //t1 is a local reference to an object on the heap - no specil magic here
t1.start(); //call to an "instance" method, can only be performed on an object.
}