Saving contacts on Nexus 4
Somone just did this here. DISABLE GOOGLE CONTACT SYNC IN YOUR APP SETTINGS!! (Not the app setting. Settings -> Apps (in all) -> contacts sync -> disable

this is not the same as just disabling the syncing aspect of the contacts page, it removes google from being all up in your contacts period since they blocked nexus owners of having a local contacts option.

and there is another way as well. i did the first one.
http://forums.androidcentral.com/general-help-how/352276-i-have-stock-android-phone-there-way-have-contact-list-not-google-affiliated-2.html#post3392252

repost it to people who ask! google is full of it. I've never seen another phone not have a local contacts page.